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in this video were taking a look at the ultimate version of exercise 1-3 from page 36 of the textbook this is chapter 1 introducing financial statements and here were identifying the effects of transactions using the accounting equation so the problem reads that Ming Chen began a professional practice on June 1st and plans to prepare financial statements at the end of each month during June Ming Chen the owner completed these transactions and then here were given a list of transactions a e3j problem says arrange the following asset liability and equity titles in a table like exhibit 1.9 from the textbook cash account receivables equipment accounts payable common stock dividends revenues and expenses use the addition and subtraction to show the effects of the transactions on the individual items of the accounting equation show new balances after each transaction so when you open up connect youll already see this table displayed for you and it shows the basic balance sheet equation