Hobson Company had the following transactions relating to its accounts payable. Use the financial statement effects template to identify the effects (both amounts and accounts) for these transactions. a. Purchases $1,764 of inventory on credit. b. Sells inventory for $2,310 on credit. c. Records $1,764 cost of sales for transaction b. d. Receives $2,310 cash toward accounts receivable. e. Pays $1,764 cash to settle accounts payable. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount.

	Balance Sheet									Income Statement
Transaction	Cash Asset	+	Noncash Assets	=	Liabilities	+	Contrib. Capital	+	Earned Capital	Revenues		Expenses	=	Net Income
a.	Answer		Answer	=	Answer		Answer		Answer	Answer		Answer	=	Answer
	AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A	AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A
b.	Answer		Answer	=	Answer		Answer		Answer	Answer		Answer	=	Answer
	AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A	AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A
c.	Answer		Answer	=	Answer		Answer		Answer	Answer		Answer	=	Answer
	AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A	AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A
d.	Answer		Answer	=	Answer		Answer		Answer	Answer		Answer	=	Answer
	AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A	AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A
e.	Answer		Answer	=	Answer		Answer		Answer	Answer		Answer	=	Answer
	AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A	AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A		AnswerAccounts payableAccounts receivableCashCost of salesInterest expenseInterest revenueInventoryRetained earningsSalesN/A