Discuss Joey John’s, Inc. signed a promissory note at the bank and received $50,000 cash.

Second National Bank just approved a loan for Joey John’s Inc. to start a home gym design business. Joey John’s Inc. is ready to start the business by renting a small office facility, purchasing equipment, hiring sales, design, and administrative help, and beginning to provide services. During March, Joey John’s first month of business, the following transactions occurred:1. Joey John’s, Inc. signed a promissory note at the bank and received $50,000 cash.2. Joey John’s issued shares of capital stock to its shareholders to raise another $75,000 cash.3. Joey John’s purchased training and design equipment in the amount of $35,000 cash.4. Joey John’s purchased supplies worth $500 on account. These supplies are expected to last 6 months.5. Joey John’s hired Joshua Ramirez to assist with design and sales on a part-time basis. He will be paid a salary of $1,000 per month for his work.6. During the first month, Joey John’s completed design work on its first two facilities, one for P. Christopher, and the other for Josephine Johnson.7. Joey John’s completed the design work for P. Christopher and sent him a bill for $1,250.8. Joey John’s completed the design work for Ms. Johnson and sent her a bill for $750.9. Joey John’s collected half of the money ($625) in cash from P. Christopher, with a promise to pay the additional amount next month.10. Joey John’s paid Joshua $1,000 cash for his first month of service.11. Joey John’s received $500 cash in advance to work on a design project for a local gym. Work on the site will not begin until August.Joey John’s paid rent of $500 in cash.Required: Using the Excel template, complete the following activities:Analyze each transaction’s effect using the accounting equation, if needed.Provide a written explanation (one sentence) on the effect of the transaction on the accounting equation.ReferencesAssociation of Fraud Examiners. (2016a). The fraud triangle. Retrieved from http://www.acfe.com/Association of Fraud Examiners. (2016b). The fraudster’s perspective. Retrieved from http://www.acfe.com/vid.aspxAnnand, D. (2016). Introduction to financial accounting. Retrieved from https://business.athabascau.ca/assets/ License: CC BY-nc-sa 3.0.Costco. (2015). Annual report 2015. Retrieved from http://phx.corporate-ir.net/phoenix.zhtml.The Crime Network. (2016). Enron scandal. Retrieved from https://youtu.be/vY6zEonpEiQ.Edspira. (2014). Stockholders’ equity (Financial Accounting). Retrieved from https://youtu.be/Dmf8hVNH8ccHermanson, R. H., Edwards, J. D., & Maher, M. W. (2011). Accounting principles: A business perspective. Retrieved from http://www.saylor.org/site/wp-content/uploads/ License under CC BY NC SA.Hermanson, R. H., Edwards, J. D., & Maher, M. W. (2010). Accounting principles: A business perspective first global text edition, volume 1. Retrieved from http://globaltext.terry.uga.edu/books/ License under CC BY.IMA. (2016). Ethics center. Retrieved from https://www.imanet.org/tools-and-resources/IFRS. (2016). Who we are and what we do. Retrieved from http://www.ifrs.org/About-us/Lister, J. (n.d.). Ethical issues facing the accounting profession. Retrieved from http://smallbusiness.chron.com/Securities and Exchange Commission. (n.d.). Spotlight on Enron. Retrieved from https://www.sec.gov/spotlight/The Sarbanes-Oxley Act 2002. (2002). Retrieved from http://www.soxlaw.com/Time Magazine. (2002). Retrieved from http://content.time.com/time/specials/ThisWayToCPA. (2012). Evolution of a profession: 8,000 years of accounting. Retrieved from https://youtu.be/i9l4vm-ziJo