. Business transactions effects on shareholders' equity. For each of the transactions given, tell whether it increases, decreases, or has no effect on shareholders' equity. Consider both shareholders' equity components-contributed capital and retained earnings. (LO 4)

a. Two friends get together, each contributing \(\$ 6,500\) to start the Sweet Tooth Candy Corporation, in exchange for common stock.

b. Sweet Tooth purchases equipment for \(\$ 3,500\) cash.

c. Sweet Tooth purchases \(\$ 4,500\) worth of inventory for cash.

d. Sweet Tooth pays expenses of \(\$ 1,500\) for electricity and phone for the month.

e. Sweet Tooth makes cash sales to customers of \(\$ 5,725\) during the month.

f. Sweet Tooth pays employees \(\$ 175\) for hours worked during the month.

g. Sweet Tooth declares and distributes \(\$ 250\) dividends to each of its owners at the end of the month.