Purchase of equipment for cash An illustration shows the basic steps to demonstrate transactional analysis for purchase of equipment. The two steps are Basic Analysis, and Equation Analysis. The Basic Analysis step is labelled as: The asset Cash is decreased by $7,000 and the asset Equipment is increased by $7,000. The equation analysis step begins with the accounting equation expressed as: Assets equals Liabilities plus Owner's Equity. An account title, Cash, under Assets displays amount $15,000 while A. Leonid, Capital under Owner's equity also displays an amount of $15,000; both labelled as Old balances. A transaction numbered (2) shows a decrease of 7,000 in cash under assets and an increase of $7,000 in Equipment listed under Assets. No item is listed under liabilities. The new balances are displayed as: Cash, $8,000 plus Equipment, $7,000 equals Owner's equity, $15,000. The assets are shown to be equal to liabilities plus owner's equity and displayed as $15,000.

Notice that total assets are still $15,000, and that Leonid's equity also remains at $15,000, the amount of his original investment. how to solve this accounting problem