During its first year of operations, Willie Winn Running Shoes entered into five transactions affecting shareholders' equity. The bar chart below depicts the company's total assets, total liabilities, and total shareholders' equity after each of five transactions. The bar on the left is total assets, and the stacked bar on the right includes total liabilities and total shareholders' equity. Beginning balances prior to Transaction 1 are $0. Answer the following questions: $120,000 $100,000 Effect on Assets, Liabilities, and Shareholders' Equity of Five Transactions $80,000 $60,000 $40,000 $20,000 Beg. $0 2 3 4 5 Transactions Assets Liabilities Stockholders' Equity Click here to open the graph(s) in a new tab. Required: 1.Transaction 1 represents the issuance of common stock for cash. How does this transaction affect the accounting equation? 2a. How does Transaction 2 affect the accounting equation? 2b. Which of the following transaction descriptions might be represented by Transaction 2? 3a. How does Transaction 3 affect the accounting equation? 3b. Which of the following transaction descriptions might be depicted by Transaction 3? < Prev 8 of 8 Next >