J.A. Motzek Inc. has the following transactions during August of the current year.
Indicate
(a) The effect on the accounting equation
(b) The debit-credit analysis illustrated.

Aug. 1 Opens an office as a financial advisor, investing $5,000 in cash in exchange for common stock.
4 Pays insurance in advance for 6 months, $1,800 cash.
16 Receives $1,100 from clients for services provided.
27 Pays secretary $1,000salary.

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On October I. C. R. Byrd invests $10,000 cash in an advertising company to be known as Pioneer Advertising Agency Inc Transaction The asset Cash increases $10,000, and stockholders' equity (specifically, Common Stock) increases $10,000 Basic Assets Liabilities*Stockholders' Equity Equation Analysis Cash Stock +10,000 +10,000 ssued Stock Debit-CreditDebits increase assets: debit Cash $10,000. Credits increase stockholders' equity credit Common Stock $10,000 Analysis Journal Oct Cash Entry 10,000 Common Stock 311 Issued shares of stock Cash 101 Common Stock 3 311 Posting Oct l 10,000 Oct I 10,000 On October I. Pioneer purchases office equipment costing $5,000 by signing a 3-month, 12%, $5,000 note payable. Transaction The asset Equipment increases $5,000, and the liability Notes Payable increases $5,000. Basic AssetsLiabilities Stockholders Equity Equation Analysis EqupmentNotes Payable +5,000 +5,000 Debit-Credit Analysis Debits increase assets: debit Equipment $5,000. Credits increase liabilities: credit Notes Payable $5,000. 157 5,000 200 Oct I Equipment Journal Entry Notes Payable 5,000 (issued 3-month, 12% note for office equipment) Equpment157 Notes Payable 200 Oct. I 5,000 Posting Oct I 5,000