Presented below is a list of possible transactions.

Analyze the effect of the 18 transactions on the financial statement categories indicated.

	Transactions	Assets	Liabilities	Owners' Equity	Net Income
1.	Purchased inventory for $80,000 on account (assume the perpetual system is used).	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect
2.	Issued an $80,000 note payable in payment on account (see item 1 above).	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect
3.	Recorded accrued interest on the note from item 2 above.	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect
4.	Borrowed $100,000 from the bank by signing a 6-month, $112,000, zero-interest-bearing note.	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect
5.	Recognized 4 months' interest expense on the note from item 4 above.	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect
6.	Recorded cash sales of $75,260, which includes 6% sales tax.	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect
7.	Recorded wage expense of $35,000. The cash paid was $25,000; the difference was due to various amounts withheld.	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect
8.	Recorded employer's payroll taxes.	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect
9.	Accrued accumulated vacation pay.	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect
10.	Recorded an asset retirement obligation.	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect
11.	Recorded bonuses due to employees.	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect
12.	Recorded a contingent loss on a lawsuit that the company will probably lose.	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect
13.	Accrued warranty expense (assume expense warranty approach).	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect
14.	Paid warranty costs that were accrued in item 13 above.	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect
15.	Recorded sales of product and related service-type warranties.	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect
16.	Paid warranty costs under contracts from item 15 above.	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect
17.	Recognized warranty revenue (see item 15 above).	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect
18.	Recorded estimated liability for premium claims outstanding.	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect	Decrease, Increase, No net effect