Problem
The Seaside Humane Society has performed the following transactions. Summarize the transactions using the accounting equation.
Transaction A: A generous cash donation of $25,000 was received.
Transaction B: The Society purchased a new piece of medical equipment (an asset) for $10,000 and will pay for it in 90 days, creating a liability.
Transaction C: Payroll was distributed, resulting in a decrease of cash in the amount of $2,000.
Assets = Liabilities + Net Assets
What are the balance sheet totals after these transactions, assuming the Society had beginning balances of zero?