The other source of an increase in equity is the profitable operation of the entity. Transactions that increase profit also increase the equity item R E . Refer to the transactions for January 3 through 8. In the following table, show the dollar amount of the change in Retained Earnings, if any, that resulted from each transaction.

If the transaction had no effect on Retained Earnings, put an X in the “No effect” column.

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RETAINED EARNINGS Date Nature 3 Borrowing GA $ 4 Purchase 5 Sale 6 Purchase 7 Sale 8 Sale Total Increased by No effect 69