Determining the Financial Statement Effects of Accounts Payable Transactions Hobson Company had the following transactions relating to its accounts payable.

a. Purchases $1,260 of inventory on credit.

b. Sells inventory for $1,650 on credit.

c. Records $1,260 cost of sales for transaction b.

d. Receives $1,650 cash toward accounts receivable.

e. Pays $1,260 cash to settle accounts payable.

Use the financial statement effects template to identify the effects (both amounts and accounts) for these transactions.