Equation and Analysis Sheet - shows how business transactions affect and change the financial position - starts off with the beginning balances that are taken from the statement of financial position - each transaction affects two or more accounts Transactions [10 Marks] 1 Metropolitan Movers pays $1,200 cash to Mercury Finance. 2 K. Lincoln, who owes Metropolitan Movers $2,500, pays $1,100 in partial payment of debt. 3 Equipment costing $1,950 is purchased for cash. 4 A new pick-up truck is purchased at a cost of $18,000. Metropolitan Movers pays $10,000 cash and arranges a loan from Mercury Finance to cover the balance of the purchase price. 5 Metropolitan Movers completes a storage service for B. Cava at a price of $1,500. A bill is sent to Cava to indicate the additional amount that Cava owes. 6 J. Hofner, the owner, withdraws $500 for personal use 7 One of the trucks requires an engine adjustment costing \$75. The repair is paid for in cash when the truck is nicked un. Chapter Three-Analyzing Changes in Financial Position Page 2