Question1. : SIX Transactions of ABC Company are summarized below in equation form, with each of the six transactions identified by abletter. For each of the transactions from a to f you are to write a separate statement explaining the nature of the transaction. For example, the explanation of transaction a could be as follows: purchased equipment for cash at a cost of $3,200. ASSETS LIABILITIES OWNER'S EQUITY Cash + Account Land+ Building+ Equipment= Account Payable+ M.Saljad Capital Receivables + $39,000 $110,000 Balances (a) Balances $26,000 - 3,200 $45,000 $42,000 $214,000 $36,000 + 3,200 $39,200 $22,800 + 900 $39,000 $42,000 $214,000 $45,000 $110,000 900 (b) Balances $214,000 $23,700 - 3,500 $20,200 $38,100 $45,000 $110,000 $39,200 + 13,500 $42,000 + 10,000 (c) Balances $214,000 $38,100 $45,000 $110,000 $52,700 $52,000 - 14,500 14,500 (d) Balance $37,500 $5,700 + 15,000 $38,100 $45,000 $110,000 $52,700 (e) Balances $214,000 + 15,000 $229,000 $45,000 $20,700 3,500 $52,700 + 2,100 $37,500 + 2,100 $38,100 $110,000 (1) Balances $20,700 $38,100 $45.000 $110,000 $54,800 $39.600 $229.000 Recording the effects of business transaction

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business…