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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 $1,750 for the current period (example) b. Borrowed $8.750 cash from local bank using a short-term note. c. Purchased $3,500 of equipment on credit. d. Earned $700 of sales revenue: collected cash. e. Received $1,400 of utilities services, on credit. 1. Earned $2,950 of service revenue, on credit g. Paid $525 cash on account to a supplier. . Incurred $120 of travel expenses; paid cash. 1. Earned $700 of service revenue, collected half in cash, with balance on credit . Collected $200 cash from customers on account. k. Incurred $500 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 cach 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 Liabilities Blockholders' Equity Salaries and Wages Expense (1.750) b Cash Cash Equipment Cash (1,750) 8.750 3,500 700 Notes Payable (short-term) Accounts Payable 8.750 3.500 d Accounts Payable 1.400 f 9 h k Re Required 2 >