Construct a balance sheet for Sophie's Sofas given the following data, including shareholders' equity. Cash balances Inventory of sofas Store and property Accounts receivable Accounts payable Long-term debt $ 6,000 $ 160,000 $ 60,000 $ 18,000 $ 13,000 $ 130,000 Assets BALANCE SHEET OF SOPHIE'S SOFAS Liabilities and Shareholders' Equity

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is