Purchase Discounts The following are transactions of Lion Company. Identify and analyze each of the following transactions of Lion Company. (All purchases on credit are made with terms of 1/10, n/30, and Lion uses the periodic system of inventory.) July 3: Purchased merchandise on credit from Devlin Enterprises for $4,100 Activity Operating Account Payable Increase, Purchases Increase Balance Sheet and Income Statement Statement(s) Feedback How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank or enter "O". If the effect is negative, use the minus sign. Balance Sheet Stockholders Assets Liabilities Equity Rev No Entry Accounts Payable -4,100 X 4,100 X No Entry Feedback July 12: Paid amount owed to Devlin Enterprises Operating Cash Decrease, Account Payable Decrease Balance Sheet only Activity Statement(s) Feedback How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank or enter "O". If the effect is negative, use the minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item