Problem 1 Use of the Balance Sheet Equation to record transactions and for the preparation of financial statements On July 1, 2014, HC, Inc. started as a business entity. A summary of transactions through December 31, 2014 is presented below. 1. Partners invested $30,000 in cash in Bank of Money in the name of the business. 2. New computer equipment is purchased for $2,500 and paid 1,500, remaining balance will be paid later. Equipment will be used for 5 years. 3. Office rent for half a year is paid in advance, $3.000. 4. Paid utility bills, $1.200. 5. Provided (and completed) services on account to Microsoft, $15,000. 6. Paid $5.500 to employees for services provided. 7. Collected cash of $7.000 for services previosly billed to Microsoft 8. Dividends of $2.000 paid to to shareholders. 8. Paid to shareholders $750. Required: a) Prepare a tabular analysis of the transactions using the Balance Sheet Equation through December 31, 2014. Be sure to label your transactions. Using following tabula show the balance sheet equation; Cash Equipment C. Capita R/E Accounts Receivable Accounst Payable b) Prepare the balance sheet as of December 31, 2014