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Analyze and record these transactions using the template method. Liabilities S/H Equity Assets Date/Ref. Cash A/R Inv. Prepaid Ins. A/P Deferred Revenue AP2-7A (Transaction analysis
Analyze and record these transactions using the template method. Liabilities S/H Equity Assets Date/Ref. Cash A/R Inv. Prepaid Ins. A/P Deferred Revenue AP2-7A (Transaction analysis and the basic accounting equation) Required Loan Payable Retained Earnings R/E/ DD < For each of the following transactions, indicate how (a) net earnings and (b) cash flows are affected. For each, state whether there will be an increase, a decrease, or no effect, and the amount (if any): i. Issued shares to investors for $60,000. ii. Purchased inventory from suppliers for $2,500, on account. iii. Purchased office supplies for $500. iv. Sold a unit of inventory for $500, on account. The unit cost $300 and was already in inventory prior to its sale. v. Purchased equipment for $10,000 cash. vi. Made a payment of $1,000 on accounts payable. vii. Used $300 of the supplies purchased in transaction (iii). viii. Received a payment of $700 from a customer for inventory previously sold on account. ix. Declared (but did not yet pay) a dividend of $2,000. x. Paid the $2,000 dividend that was declared above. xi. Depreciated equipment by $500
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