Transaction a. Balance Sheet Income Statement b. Statement of Cash Flows Total Assets Total Liabilities Total Net Equity Income 1. Owner invests $900 cash in business in exchange for stock +900 +900 Operating Investing Financing Activities Activities Activities +900 2. Receives $700 cash for services provided +700 +700 +700 +700 3. Pays $500 cash for employee wages -500 -500 -500 -500 4. Buys $100 of equipment on credit +100 5. Purchases $200 of supplies on credit +200 +200 6. Buys equipment for $300 cash +/-300 -300 7. Pays $200 on accounts payable 8. Provides $400 of services on credit -200 -200 -200 +400 +400 -50 9. Pays $50 cash in dividends +/-400 10. Collects $400 cash on accounts receivable -50 +400