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Required: For the transactions/adjustments given below show the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on net income by indicating the account name(s) affected and whether each is an addition (+) or subtraction (-). Items that affect net income should not be shown as affecting stockholders' equity. A L + SE a. Transaction/Adjustment Issued common stock to the initial stockholders in exchange for their cash investment. Signed a lease for office space and paid the first three months of rent in advance. + Cash + + Common stock b. + Prepaid rent + Wages payable + - Cash + + = + c. Purchased office equipment and shelving for cash. + Equipment -Cash Purchased merchandise inventory; made a partial d. payment in cash, and agreed to pay the balance within 30 + Merchandise inventory days. Cash Sold merchandise inventory on account for an amount + Accounts receivable greater than the cost of the inventory sold. + Accounts payable + + + + e. - Cash + f. Paid employees for the first two weeks of the month. At the end of the month, accrued wages owed to g. employees for the second two weeks of the month. + + + = + Wages payable