Second National Bank just approved a loan for Joey Johns Inc. to start a home gym design business. Joey Johns Inc. is ready to start the business by renting a small office facility, purchasing equipment, hiring sales, design, and administrative help, and beginning to provide services. During March, Joey Johns first month of business, the following transactions occurred:

1. Joey Johns, Inc. signed a promissory note at the bank and received $50,000 cash.
2. Joey Johns issued shares of capital stock to its shareholders to raise another $75,000 cash.
3. Joey Johns purchased training and design equipment in the amount of $35,000 cash.
4. Joey Johns purchased supplies worth $500 on account. These supplies are expected to last 6 months.
5. Joey Johns hired Joshua Ramirez to assist with design and sales on a part-time basis. He will be paid a salary of $1,000 per month for his work.
6. During the first month, Joey Johns completed design work on its first two facilities, one for P. Christopher, and the other for Josephine Johnson.
7. Joey Johns completed the design work for P. Christopher and sent him a bill for $1,250.
8. Joey Johns completed the design work for Ms. Johnson and sent her a bill for $750.
9. Joey Johns collected half of the money ($625) in cash from P. Christopher, with a promise to pay the additional amount next month.
10. Joey Johns paid Joshua $1,000 cash for his first month of service.
11. Joey Johns received $500 cash in advance to work on a design project for a local gym. Work on the site will not begin until August.
12. Joey Johns paid rent of $500 in cash.

Required: Using the Excel template, complete the following activities:

1. Analyze each transactions effect using the accounting equation, if needed.
2. Provide a written explanation (one sentence) on the effect of the transaction on the accounting equation.