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Zen began a new consulting firm on January 5 . Following are total account balances after each of the company's first five transactions ( using

 

Zen began a new consulting firm on January 5. Following are total account balances after each of the company's first five transactions (using the accounting equation form). Analyze the accounting equation for each transaction and match the given transaction with its most likely description.

Transaction Assets = Liabilities + Equity

Cash + Accounts Receivable + Supplies + Equipment = Accounts Payable + Common Stock + Revenues

1. $ 42,000 + $ 0 + $ 0 + $ 0 = $ 0 + $ 42,000 + $ 0

2. 38,000 + 0 + 7,000 + 0 = 3,000 + 42,000 + 0

3. 28,000 + 0 + 7,000 + 10,000 = 3,000 + 42,000 + 0

4. 28,000 + 8,000 + 7,000 + 10,000 = 3,000 + 42,000 + 8,000

5. 31,000 + 8,000 + 7,000 + 10,000 = 3,000 + 42,000 + 11,000

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