Brief Exercise 2-1 (Static) Transaction analysis (LO2-1] The Marchetti Soup Company entered into the following transactions during the month of June (1) purchased inventory on account for $165.000 (assume Marchetti uses a perpetual inventory system); (2) paid $40,000 in salaries to employees for work performed during the month; (3) sold merchandise that cost $120,000 to credit customers for $200,000; (4) collected $180,000 in cash from credit customers; and (5) paid suppliers of inventory $145,000. Analyze each transaction and show the effect of each on the accounting equation for a corporation (Amounts to be deducted should be indicated by a minus sign. Enter the net change on the accounting equation.) Assets Liabilities Paid in capital Retained Earnings (1) (2) (3) (4) (5) Brief Exercise 2-6 (Static) Adjusting entries; income determination (LO2-5, 2-6) A company has a fiscal year-end of December 31: (1) on October 1, $12,000 was paid for a one-year fire insurance policy. (2) on June 30 the company advanced its chief financial officer $10.000, principal and interest at 6% on the note are due in one year, and (3) equipment costing $60,000 was purchased at the beginning of the year for cash. Depreciation on the equipment is $12.000 per year If the adjusting entries were not recorded, would net income be higher or lower and by how much? Net Income would be by The year-end adjusted trial balance of the Timmons Tool and Die Corporation included the following account balances: retained earnings, $220,000, dividends, $12,000, sales revenue, $850,000; cost of goods sold, $580,000, salaries expense $180,000: rent expense, $40,000: and interest expense, $15,000. Prepare the necessary closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list > 1 Record the entry to close the revenue accounts using the retained earnings account. nings 2 Record the entry to close the expense accounts using the retained earnings account. 3 Record the entry to close the dividends account. Credit