P2-2A. Transaction Analysis An analysis of the transactions of Pruitt Detective Agency for the month of

May appears below. Line 1 summarizes the companys accounting equation data as of May 1; lines

210 represent the transactions for May

Required

a. Show that assets equal liabilities plus stockholders equity as of May 1.

b. Describe the apparent transaction indicated by each line. (For example, line 2: Borrowed $2,000,

giving a note payable.) If any line could reasonably represent more than one type of transaction,

describe each type. Transaction (8) does not affect net income.

c. Show that assets equal liabilities plus stockholders equity as of May 31

Ulupe Vuid CUMMIT Collaborate P1-5 P1-6 P2-2 P2-3 Cash Accounts Receivable + $7,600 + Supplies $1,500.00 + + + $2,400 + 2,000 + 6,100 + Equipment $8,000.00 = = Accounts Payable + $300 + Notes Payable $6,000 + 2,000 Common Stock $10,000 Retained Earnings $3,200 -6,100 + 980 + 980 O VOLAWN 5,200 5,200 -300 -300 + 1,500 + -800 + -900 + -2,500 $7.500 + 1,500 -800 + + 900 Totals $2.480 + $8.900 $9.100 $6.700 + $25,580 Total Assets -2,500 + $980 + $5.500 + $10,000+ $25,580 Total Liabilities and Stockholders' Equity 1 Beginning balances 590 ) AVERAGE 2,742.678671... MIN -6,100 MAX 161 $25,580 (COUNTA