Financial Statement Effects Staple Company reports on a calendar-year basis. Determine which of its balance sheet and income statement accounts will be affected by the following transactions, and indicate whether the account balances will be increased or decreased:

a. Land previously purchased for $24,000 is sold for

$30,000 cash.

b. New shares of common stock are issued for $70,000.

c. Inventory is sold on account for $50,000. The inventory had previously been purchased for $34,000.

d. A bank loan of $100,000 is taken out on December 31.

e. A three-year insurance policy is purchased for $45,000 on January 1. Insurance expense is recognized at year-end.

f. A patent with an expected life of 5 years was purchased for $80,000 on December 31 of the preceding year.