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A number of business transactions carried out by Smalling Manufacturing Company are as follows. a. Borrowed money from a bank. b. Sold land for cash

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A number of business transactions carried out by Smalling Manufacturing Company are as follows. a. Borrowed money from a bank. b. Sold land for cash at a price equal to its cost. c. Paid a liability. d. Retured for credit some of the office equipment previously purchased on credit but not yet paid for (Treat this the opposite of a transaction in which you purchased office equipment on credit) e. Sold land for cash at a price in excess of cost. (Hint: The difference between cost and sales price represents a gain that will be in the company's income statement.) 1. Purchased a computer on credit. g. The owner invested cash in the business h. Purchased office equipment for cash i. Collected an account receivable Indicate the effects of each of these transactions on the total amounts of the company's assets, liabilities, and owners' equity. Organize your answer in tabular form, using the following column headings and the code letters I for increase. D for decrease, NE for no effect and asset offsetting. The answer for transaction is provided as an example, Transaction Assets - Liabilities - Owners' Equity Listed in random order are the items to be included in the balance sheet of Rocky Mountain Lodge at December 31, year 1 Equipment Land Accounts payable Accounts receivable Salaries payable Interest payable $47,840 510,000 65,762 12,720 40,200 14,480 Buildings Capital stock Cash Furnishings Snowmobiles Notes payable Retained earnings $600,000 162,000 37,680 70,440 18,480 744.ee Required: 0-1. Compute the amount to be shown for retained earnings 0-2. Prepare a balance sheet at December 31, year 1 b. Assume that no payment is due on the notes payable until year 3. Does this balance sheet indicate that the company is in a strong financial position as of December 31, year 1? Complete this question by entering your answers in the tabs below. Reg A1 Red A2 ReqB Compute the amount to be shown for retained earnings Retained earnings Reg A2 >

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