Determining the Financial Statement Effects of Accounts Payable Transactions Hobson Company had the following transactions relating to its accounts payable. Use the financial statement effects template to identify the effects (both amounts and accounts) for these transactions. a. Purchases $2,520 of inventory on credit. b. Sells inventory for $3,300 on credit. c. Records $2,520 cost of sales for transaction b. d. Receives $3,300 cash toward accounts receivable. e. Pays $2,520 cash to settle accounts payable. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount.

8. Purchases 52,520 of inventory on credit. 6. Sells inventory for $3,300 on credit. c. Records $7,520 cost of sales for transaction. d. Receives $3,300 cash toward accounts receivable. e Pays $2.520 cash to settle accounts payable Accounts payable Accounts receivable Note: For each account category, incicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount CAS Cost of sales Balance Sheet Llabilitles Inc interest expense Interest Cash Asset Noncash Assets Contrib. Capital + Earned Capital Revenues = Net Income Transaction a a. 0 0 0 Interest ever le 0 = + 0 . 3 0 C . Inventory . . 5 U- C 0 - Retained earnings 0 0 . d. 3 0 = 0 0 C + NA 0 0 C C 3 . Check