ChSHW Book Purchases and Sales of Merchandise, Cash Flows Pedal City, a bike shop, opened for business on April 1. It uses a periodic inventory system. The following transactions occurred during the first month of business Required: For all accounting equations, if a financial statement item is not affected, select "No Entry" and leave the amount box blank or increased, it will have the effect of decreasing the corresponding financial statement item 1. Identify and analyze each of the following transactions of Pedal City April 1: Purchased five units from Giorgio, Inc. for $500 total, with terms 3/10, n/30, FOB destination. Activity Accounts the effect is negative, use the minus sign. Remember: If a contra account is Statement(s) How does this entry affect the accounting equation? Assets April 10. Paid for the April 1 purchase Activity Accounts Balance Sheet Stockholders' Liabilities Equity Revenues Check My Work 1 more Check My Work uses remaining Income Statement Expenses