PROBLEM 02-BALANCE SHEET EQUATION To illustrate the dual effects of various transactions on the balance sheet equation, consider the following selected transactions for a sole proprietorship owned by S. Moody: 1. On January 1, S. Moody invested $75,000 cash in the business. 2. Equipment costing $60,000 is purchased for cash on January 5. 3. Supplies costing $12,000 are purchased from a supplier on account on January 15. 4. The supplier in (3) is paid $8,000 of the amount due on January 18. D 5. A one-year fire insurance premium of $600 for coverage beginning February 1 is paid in cash on January 21. 6. On January 22, a customer paid $10,000 in advance for services to be provided the following week. 7. On January 31, Moody completed the services for the customer who had paid in advance. 8. On January 31, S. Moody discovered that half the supplies were used up in the course of providing the services to the customer