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Zen began a new consulting firm on January 5. The accounting equation showed the following financial summary for each of the company's first five
Zen began a new consulting firm on January 5. The accounting equation showed the following financial summary for each of the company's first five transactions. Analyze the accounting equation for each transaction and match the given transaction with its most likely description. Assets Accounts Liabilities + Accounts Equity Common Transaction. Cash +Receivable + Supplies Equipment = 1. 2. $ 42,000 + 32,000+ $ 0 $0 + $ 0 Payable $ 0 + Stock + Revenues $ + + $ 0 42,000 10,000 0 42,000+ 3. 35,000 + 10,000 45,000 + 0 4. 5. 38,000 + 38,000+ 10,000 0 45,000+ 3,000 8,000 10,000 45,000+ 11,000 Transaction 1. 2. 3. 4. 5. The owner invested $42,000 cash in the business. The company purchased equipment for $10,000 cash. Description
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