1. Effects of Transactions: For the transactions below of Shehata Coffee Shop (SCS), indicate how each transaction impacts the indicated sections of the financial statements by writing Increase, Decrease or NE (no effect) in the chart below. If the net impact of a transaction is zero, put NE (for example, if SCS purchases Equipment paying Cash, the Net Impact on all sections is zero (Equipment increases and Cash decreases by the same amount). All transactions are independent of each other. IMPORTANT: DO NOT LEAVE A BOX BLANK. Each box is 42 point, 20 points total: EXAMPLE: SCS recognizes Depreciation Expense of $1,000 for the period. a. SCS unexpectedly recovers $30 cash on an account that it previously wrote off as uncollectible b. SCS receives early payment from a customer in the amount of $45 cash that satisfies a $50 Account Receivable. In other words, SCS had offered the customer a discount if they paid early and the customer did pay by the early deadline. c. SCS estimates and records Bad Debt Expense of $1,050 for the accounting period. d. SCS had to write down the value of their Goodwill account by $10,000 due to impairment. e. SCS spends $1,000 upgrading equipment, which extends the useful life by 2 years (just the immediate impact of the 1,000 expenditure, disregard depreciation). f. SCS sells a piece of equipment for $300; the equipment had a historical cost of $500 and accumulated depreciation of $150. g. SCS estimates warranty liabilities of $100 related to sales this period (disregard the sales impact, just the answer for the estimate) h. SCS makes their annual payment of $1,500 under the terms of a lease contract. ASSETS LIABILITIES STOCKHOLDER'S EQUITY REVENUES/ GAINS EXPENSES/ LOSSES Example Decrease NE Decrease NE Increase