E3-8 Determining Accounting Equation Effects and Net Income (LO 3-2, LO 3-3] The following transactions occurred during a recent year, a. Pald wages of $850 for the current period (example). b. Borrowed $4,250 cash from local bank using a short-term note. c. Purchased $1,700 of equipment on credit. d. Earned $340 of sales revenue; collected cash. e. Received $680 of utilities services, on credit. Earned $1,450 of service revenue, on credit g. Pald $255 cash on account to a supplier h. Incurred $60 of travel expenses, paid cash. 1. Earned $340 of service revenue; collected half in cash, with balance on credit. J. Collected $90 cash from customers on account. k. Incurred $260 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' N 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: 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 account balances with a minus sign.) Assets Llabilities Stockholders' Equity Salaries and Wages Expense (850) (850) 1 9 1 Required 2 > 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. Determine the company's preliminary net income. Preliminary Net Income