The document shows transactions that impact assets, liabilities, and equity according to the accounting equation Assets = Liabilities + Equity. It starts with $10,000 of assets from an investment, then borrowing $30,000 increases both assets and liabilities. Purchasing $20,000 of goods increases assets. Selling goods for $20,000 decreases assets and paying a $20,000 note decreases both liabilities and assets, keeping the accounting equation in balance.

1. Assets = Liabilities + Equity1. Invest +10,000 +10,0002. Borrow +30,000 +30,0003. Purchase +20,000 +20,0004. Sold - 20,000 - 20,000 Goods +40,000 +40,0005. Pay Note - 20,000 - 20,000Totals 60,000 30,000 30,000The Accounting Equation