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TRANSACTION 1. INVESTMENT BY STOCKHOLDERS 1. Ray and Barbara Neal decide to start a smartphone app development company that they incorporate as soft byte SA, On September 1,2020 , they invest $15,000 cash (+A= Dr. ) in the business in exchange for $15,000 of ardinary shares (+OE=Cr) TRANSACTION 2. PURCHASE OF EQUIPMENT FOR CASH 2. Soft byte SA purchases computer equipment (+A=Dr.)for$7,000cash(A=Cr. TRANSACTION 3. PURCHASE OF SUPPUES (+A= Dr.) ON CREDIT (+L+AP)=C. ) 3. Softbyte SA purchases for $1,600 headsets and other accessories expected to last several manths. The supplier aliows 5 ofthyte to pay this bill in October. TRANSACTION 4, SERVICES PEMFORMLD FOR CASH [+A=D, ] 4. Softbyte SA receives $1,200 cash from customers for app development services REVENUE (+OE = Cr.) it has performed TRANSACTION 5. PURCHASE OF ADVERTISING Erpense (OF. Dr.) ON CRFDIT (t=Cr. = AP) 5. Softbyte SA receives a bill for $250 from the Programming News for advertising on its website but postpones payment ACCOUNTING EQUATION ASSETS = UABILITIES + OWNERS EQUITY