Problem 1 (40 points) Maria Martinez decides to open a cleaning and laundry service near the local college campus that will operate as a sole proprietorship. Analyze the following transactions for the month of June in terms of their effect on the basic accounting equation. Record each transaction by increasing (+) or decreasing (-) the dollar amount of each item affected. Indicate the new balance of each item after a transaction is recorded. It is not necessary to identify the cause of changes in owner's equity. Transactions (1) Maria Martinez invests $25,000 in cash to start a cleaning and laundry business on June (2) Purchased equipment for $5,000 paying $3,500 in cash and the remainder due in 30 days. (3) Purchased supplies for $1,200 cash. (4) Received a bill from College Clarion for $200 for advertising in the campus newspaper. (5) Cash receipts from customers for cleaning and laundry amounted to $2,600. (6) Paid salaries of $600 to student workers. (7) Billed the Tiger Tennis Team $480 for cleaning and laundry services. (8) Paid $200 to College Clarion for advertising that was previously billed in Transaction 4. (9) Maria Martinez withdrew $1,300 from the business for living expenses. (10) Incurred utility expenses for month on account, $500. Trans- Accounts Accounts Owner's action Cash + Receivable + Supplies + Equipment Payable Capital (1) + 25,000 25.000 investment