Return to Table 6.4. Without looking to the rest of the section, write down the effect of
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Return to Table 6.4. Without looking to the rest of the section, write down the effect of each transaction on the accounting equation. At what point in the sequence of events in Table 6.4 is the ownership interest affected? Why is it not affected before that point in the sequence? How would the ownership interest have been affected if, on 5 July, there had been a fire as the goods were being transferred to the finished goods store and one-quarter of the finished trays were destroyed?
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