Green Wave Company has the following transactions.

1.Pay for rent in the current month, $1,500.

2.Purchase equipment for $40,000 cash.

3.Purchase office supplies on account for $1,000.

4.Provide services for $20,000 on account.

5.Pay workers’ salaries of $5,000 for the current month.

6.Receive $15,000 from customers in (3) above.

7.Receive cash of $5,000 in advance from a customer.

Required:

For each transaction, describe the dual effect on the accounting equation. For example, in the first transaction,

(1) Assets increase

(2) Stockholders’ equity increases.