Case 1: Effect of transactions on accounting equation. On August 1 Joseph set up Exacta Reprographic Company. The following transactions took place during the first month: a) Joseph deposited £ 70,000 in the company’s bank account in exchange for £ 7,000 shares of £ 10 each in the share capital of the company. b) Took a bank loan, £25,000. c) Purchased for cash two photocopiers costing £ 40,000 each. d) Purchased office supplies on credit £ 10,000. e) Received photocopying revenues £ 25,000 f) Paid office rent in cash £ 2,000. g) Paid staff salary £ 600 h) Billed customers for services £7,000 i) Repaid a part of the bank loan £10,000 j) Purchased a photocopier on credit £40,000 k) Declared and paid dividends, £2,500. 
Required
1. Construct a table of the assets, liabilities and owner’s equity in equation form, using the following column headings: Cash; Debtors; Office Supplies; Office Equipment; Creditors; and Shareholders’ Equity. 
2. Analyze the effects of the transactions on the accounting equation A = OE + OL