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

To analyze the accounting equation for each transaction and match it with its most likely description, we need to understand the basic accounting equation:

Assets = Liabilities + Equity

Each transaction will affect this equation in some way. Let's analyze the given transactions:

1. Transaction 1:

   • Cash: $46,000
   • Receivable: $0
   • Assets: $46,000
   • Supplies: $15,000
   • Equipment: $0

   Analysis:

   • This transaction likely represents the initial investment by the owner into the business. The owner contributes cash, which increases the assets (cash) and equity (owner's capital).

2. Transaction 2:

   • Cash: $24,000
   • Receivable: $12,000
   • Assets: $12,000
   • Supplies: $15,000
   • Equipment: $0

   Analysis:

   • This transaction could represent a service provided on credit. The receivable increases, indicating that the company is owed money, and cash is received for part of the service. Supplies are also purchased, which increases the supplies account.

3. Transaction 3:

   • Cash: $24,000
   • Receivable: $0
   • Assets: $24,000
   • Supplies: $15,000
   • Equipment: $0

   Analysis:

   • This transaction might represent the collection of receivables. The receivable account decreases to zero, and cash increases, indicating that the company collected the money owed to it.

4. Transaction 4:

   • Cash: $8,000
   • Receivable: $0
   • Assets: $8,000
   • Supplies: $15,000
   • Equipment: $0

   Analysis:

   • This transaction could represent the purchase of equipment or supplies with cash. The cash decreases, and the supplies or equipment account increases.

5. Transaction 5:

   • Cash: $31,000
   • Receivable: $12,000
   • Assets: $19,000
   • Supplies: $15,000
   • Equipment: $14,000

   Analysis:

   • This transaction might represent a combination of activities, such as providing services on credit and purchasing equipment. The receivable increases, indicating services provided on credit, and equipment is purchased, increasing the equipment account.

Summary:

• Transaction 1 is likely the initial investment by the owner.
• Transaction 2 could be a service provided on credit with partial cash payment and purchase of supplies.
• Transaction 3 might be the collection of receivables.
• Transaction 4 could be the purchase of equipment or supplies with cash.
• Transaction 5 might involve providing services on credit and purchasing equipment.