Use the accounting equation to show the effects of each of the following transactions on the firm’s balance sheet:

1. Received subscription orders and cash of $360,000, representing 160,000 magazines.

2. Mailed 30,000 magazines (ignore any inventory effects).

3. Borrowed $100,000 at 6% annual interest for one year.

4. Mailed 30,000 magazines (ignore any inventory effects).

5. Mailed 70,000 magazines (ignore any inventory effects).

6. Accrued interest on the loan for six months. (Set up an interest payable account.)

7. Accrued interest on the loan for the following six months. P-968