The transactions for the Newman Company are below:
1. The owners invested $10,000 cash in the company.
2. The company acquired equipment that cost $8,000. 25% was paid in cash and the rest was settled with a note.
3. The company acquired $2,800 of inventory and paid cash.
4. The company acquired $600 of supplies on account.
5. The company sold merchandise for $1,800 on account. The inventory had a cost of $1,000.
6. The company received $400 from Transaction #5.
7. The company paid $300 on accounts payable.
Required:
Prepare an analysis of Newman Company's transactions using the equation approach.