Zen began a newconsultingfirm on January 5, and the accounting equation showed the following financial summary for each company's first five transactions:Assets = Liabilities + Owner's EquityThe accounting equation holds the key to understanding financial transactions.It is used by businesses andaccountantsto record and track financial transactions accurately. Every financial transaction has two sides; the first is the debit and the second is the credit.Each of Zen's first five transactions will be analyzed below:Transaction 1:Zen invested $5,000 cash in the new consulting firm.Cash increases by $5,000 (debit)Owner's equity increases by $5,000 (credit)Transaction 2:Zen bought office equipment for $2,000, of which $1,000 was paid in cash and the rest was on credit.Office equipment increases by $2,000 (debit)Cash decreases by $1,000 (credit)Accounts payable increase by $1,000 (credit)Transaction 3:The consulting firm signed a contract with a client to provide services worth $3,000, with the client paying a $1,000 deposit in cash.Cash increases by $1,000 (debit)Unearned service revenue increases by $1,000 (credit)Transaction4:The consulting firm provided consulting services worth $1,500, and the client paid $500 cash for the services rendered.Unearned service revenue decreases by $1,000 (debit)Service revenue increases by $1,500 (credit)Cash increases by $500 (debit)Transaction 5:Zen withdrew $500 from the business for personal use.Owner's equity decreases by $500 (debit)Cash decreases by $500 (credit)Thus, Zen's first five transactions can be summarized as follows: Transaction 1: Cash increases, Owner's equity increases Transaction 2: Office equipment increases, Cash decreases, Accounts payable increase Transaction 3: Cash increases, Unearned service revenue increasesTransaction 4: Unearned service revenue decreases, Service revenue increases, Cash increasesTransaction 5: Owner's equity decreases, Cash decreases Zen's consulting firm made five transactions in total, which wereanalyzedusing the accounting equation.To know more aboutconsultingvisit;brainly.com/question/29342787#SPJ11...

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