E3-8 (Algo) Determining Accounting Equation Effects and Net Income [LO 3-2, LO 3-3] The following transactions occurred during a recent year: a. Paid wages of $1,450 for the current period (example) b. Borrowed $7,250 cash from local bank using a short-term note. c Purchased $2,900 of equipment on credit. d. Earned $580 of sales revenue; collected cash. e. Received $1,160 of utilities services, on credit. f. Earned $2,450 of service revenue, on credit. g. Paid $435 cash on account to a supplier. h. Incurred $100 of travel expenses; paid cash. i. Earned $580 of service revenue; collected half in cash, with balance on credit. j. Collected $160 cash from customers on account. k. Incurred $420 of advertising costs; paid half in cash, with balance on credit Required: 1. For each of the transactions, complete the following table, indicating the account, amount, and direction of the effect (+ for increase and for decrease) of each transaction under the accrual basis. Include revenues and expenses as subcategories of stockholders' equity, as shown for the first transaction, which is provided as an example. 2. Determine the company's preliminary net income. Complete this question by entering your answers in the tabs below. Required 1 Required 2 For each of the transactions, complete the following table, indicating the account, amount, and direction of the effect (+ for increase and for decrease) of each transaction under the accrual basis. Include revenues and expenses as subcategories of stockholders' equity, as shown for the first transaction, which is provided as an example. (Enter any decreases to Assets, Liabilities, and Stockholder's Equity with a minus sign.) Transaction Assets Stockholders' Equity Salaries and Wages Expense a. Cash (1,450) Liabilities (1,450) = 7.250 = Notes Payable (short-term) 2,900 = Accounts Payable b. Cash 7,250 + 2,900 + C Equipment d. Cash 580] = + Sales Revenue 580 e. (1,160) f. Accounts Receivable 2.450 = Accounts Payable 2,450 = (435)| = Accounts Payable (100) = g. Cash 1,160 + Utilities Expense + Service Revenue (435) + Travel Expense + Service Revenue h Cash (100) 580 i. Cash 290 = i. Accounts Receivable 290] = + j. Cash 160 - j Accounts Receivable 160 = k. Cash 2101 = Accounts Payable 210 + Advertising Expense 420