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, 1/30, and Lion uses the periodic system of Inventory.) July 3: Purchased merchandise on credit from Devlin Enterprises for $2.000 Activity Accounts Operating Account Payable Increase, Purchases Increase Balance Sheet and income Statement Statement(s) 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" If the effect is negative, use the minus sign Balance Sheet Income Statement Stockholders Assets Liabilities + Equity Expens No Entry Accounts Payable 2,000 -2,000 No Entry amount owed to Devi Enterprises Operating Cash Decree Account Payable Decrease Balance shoot only 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 v e the min Remember a contra account is increased, it will have the effect of decreasing the corresponding financial statement item Balance Sheet Income Statement Stockholders Assets Liabilities Equity Revenues Expens No Entry