Dual effects of transactions on balance sheet equation and journal entries. A firm engages in the following six transactions.

(1) The firm issues 12,000 shares of $1 par value common stock for $12 cash per share.

(2) The firm acquires land costing $50,000 and a building costing $900,000. It gives

$1 10,000 in cash and 70.000 shares of its $1 par value common stock valued at $840,000 to acquire the land and building.

(3) The firm pays $6,000 cash for a one-year insurance policy on the land and building. The policy period commences next month.

(4) The firm acquires merchandise inventory costing $150,000 on account from various suppliers.

(5) The firm pays $147,000 in cash to the suppliers in transaction (4) for its previous pur- chases on account. The $3,000 difference between the original inventory cost and the amount paid represents a discount for prompt payment, which the firm treats as a reduc- tion in the cost of the merchandise.

(6) The firm received SI. 300 from a customer as an advance on inventor,' that the firm will deliver to the customer next month.

a. Indicate the effects o( these six transactions on the balance sheet equation using this format:
Transaction Number (1)
Subtotal Assets $144,000 $144,000 Liabilities $0 $0 Shareholders' Equity $144,000 $144,000

b. Give the journal entry for each of the six transactions.