Prompt #2 [3 points]

Please provide the following information, from the business' perspective, for each of the following business transactions. Assume your responses are as of EOD (end of day) on the date of the transaction.

1. Which portions of the accounting equation changed (i.e. Increase, Decrease, or No Effect)? Have Revenues or Expenses in the Income Statement been affected?
2. Which specific line-item accounts have been affected (e.g. Cash, Revenues, Accounts Payable, etc.)?
3. How did each of these line-items change? Increase or decrease?

(1) [1 point] On June 30^th, 2022, Disney purchases a line of Star Wars toys (to be resold) from a vendor for $20,000 in Cash.

(2a) [1 point] On December 29^th, 2022, an IT company, Cloud Systems, Inc. signs a contract to provide computer and network maintenance to a local school district for three years beginning on January 1^st, 2023. The contract totals $300,000. No cash or deposit is received as part of the contract signing.

(2b) [1 point] On December 31^st, 2023, Cloud Systems, Inc. receives a $100,000 cash payment from the local school district for the first-year of computer and network maintenance services.