During the month, a company enters into the following transactions: 1. Borrows $8,500 of cash from the bank by signing a formal agreement to repay the loan in 2 years. 2. Buys $6,800 of new equipment on account. 3. Pays off $4,800 of accounts payable. 4. Pays off $2,400 of notes payable. Required: a. Show the effect of these transactions on the basic accounting equation. b. Prepare the journal entries that would be used to record the transactions. Complete this question by entering your answers in the tabs below. Required A Required B Show the effect of these transactions on the basic accounting equation. (Enter any decreases to account balances with a minus sign.) Transaction Analysis Assets 1. 2. 3. 4.1 Liabilities Required A Required B > Stockholders' Equity < Prev 8 of 26 Next > Help Save & Exit - w Required A Required B Prepare the journal entries that would be used to record the transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < A B C D Record the entry for cash of $8,500 borrowed from the bank by signing a formal agreement to repay the loan in 2 years. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Clear entry Record entry C View general journal < Required A Required B < Prev 8 of 26 Next > MacBook Pro G Search or type URL d Journal Entry Required" in the first account field.) aw View transaction list Journal entry worksheet < A C D Record the entry for purchase of new equipment on account for $6,800. Note: Enter debits before credits. 2 Transaction 2 General Journal Debit Credit Clear entry Record entry View general journal ols e Mc Graw Hill ! View transaction list account Journal entry worksheet < A B D Record the entry for cash used to pay off accounts payable for $4,800. Note: Enter debits before credits. Transaction 3 @ 72 General Journal Debit Credit Record entry Clear entry C View general journal MacBook Pro G Search or type URL $ % 95 54 #3 96 & 28 7 00 * 8 61 10 Skipped ols Mc Graw Hill k Prepare the journal entries that would be used to record the transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < A B C Record the entry for cash used to pay off notes payable for $2,400. Note: Enter debits before credits. Transaction 4 General Journal Debit Credit Record entry Clear entry View general journal MacBook Pro G Search or type URL &