Cullen Beatty plans to start a consulting business-Cullen Consulting Services. In preparation to do this, on April 1, 2016, he invested $50,000 in cash and $19,000 in equipment, and opened an account at Office Plus by purchasing $1,500 in office supplies which is due by the end of the month. He then signed a one-year lease agreement on an office building for $6,000, paying the full amount in advance.
Cullen would like an explanation of the accounting for his business actions as of April 1, 2016. Explain the terms and interactions between the categories on a Balance Sheet.