Accounting Transactions For each of the following transactions:

a. Identify a decision by a manager, investor, or creditor that could be influenced by information about the transaction.

b. Analyze the transaction and indicate the accounts that should be used and the dollar amount that should be recorded.

c. Identify the financial statement disclosures that would be made.

Transactions:

1. Merchandise is sold on account for $3,500, the cash to be collected in thirty days.

2. Inventory of $17,350 is purchased on account and is to be paid for in fifteen days.

3. The company takes in a new partner who invests

$150,000 cash in the business.

4. The company borrows $250,000 on a three-year note from the local bank. Interest at 10 percent annually is to be paid at the end of each quarter.

5. The customer in the first transaction pays the account in full.