An analysis of the transactions made by Acme Consulting for the month of July is shown below.

Required:
a. Explain each transaction.
b. List the changes in the company's balance sheet during the month of July.
c. Prepare an income statement for the month (ignore taxes).
d. Explain the changes in the Cash account.
e. Explain why the change in the Cash account and the month's income are not the same.

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CashAccounts +Supplies Equipment Accounts Owners'Description of Receivable Inventory Pavable Equity Transaction + $20,000 Investmernt 1. + $20,000 2. -S 5,000 3. -$ 1,000 4.-$ 4,500 5. +$5,000 $5,000 6. -$ 1,500 7. +1,000 -$1,000 8. -$ 750 9.- 500 +$7,000 +$2,000 +$1,000 $4,500 Salaries + $10,000 Revenues S1,500 750 500 Rent Utilities 10 +$200 200 Travel $200 $ 200