Accounting equation

Transaction (1):  Ray Neal decides to open a computer programming service which he names Softbyte. On September 1, 2012, Ray Neal invests $15,000 cash in the business.

 Transaction (2):  Purchase of Equipment for Cash. Softbyte purchases computer equipment for $7,000 cash.

Transaction (3):  Softbyte purchases for $1,600 from Acme Supply Company computer paper and other supplies expected to last several months.  The purchase is made on account.

Transaction (4):  Softbyte receives $1,200 cash from customers for programming services it has provided.

Transaction (5):  Softbyte receives a bill for $250 from the Daily News for advertising but postpones payment until a later date.

Transaction (6):  Softbyte provides $3,500 of programming services for customers. The company receives cash of $1,500 from customers, and it bills the balance of $2,000 on account.

Transaction (7):  Softbyte pays the following expenses in cash for September: store rent $600, salaries of employees $900, and utilities $200

.

Transaction (8):  Softbyte pays its $250 Daily News bill in cash.

Transaction (9):  Softbyte receives $600 in cash from customers who had been billed for services [in Transaction (6)].

Transaction (10):  Ray Neal withdraws $1,300 in cash from the business for his personal use.