E3-6 Determining Accounting Equation Effects and Net Income The following transactions occurred during a recent year. a. Paid wages of $1,000 for the current period b. Borrowed $5,000 cash from local bank c. Purchased $2,000 of equipment on credit d. Earned $400 of sales revenue, collected cash e. Received $800 of utilities services on credit Earned $1,700 of service revenue on credit g. Paid $300 cash on account to a supplier h. Incurred $70 of delivery expenses, paid cash E Earned $400 of service revenue, collected half in cash, balance on credit Collected $100 cash from customers on account Incurred $300 of advertising costs, paid half in cash, balance on credit Required: For each of the transactions, complete the table below, indicating the account, amount, and direction of the effect (+ for increase and - for decrease) of each transaction under the accrual basis. Write NE if there is no effect. Include revenues and expenses as subcategories of shareholders' equity, as shown for transaction (a), which is provided as an example. Also determine the company's preliminary net income. LO3-2. LO3-3