Q1 Analyze each of the following transactions and show the effect on the accounting equation.

1. Provide services to customers on account for $50,000.
2. Purchase equipment by signing a note with the bank for $35,000.
3. Repay $10,000 of the note in (2) above.
4. Pay utilities of $5,000 for the current month.

Q2 The Marchetti Soup Company entered into the following transactions during the month of June: (1) purchased inventory on account for $165,000 (assume Marchetti uses a perpetual inventory system); (2) paid $40,000 in salaries to employees for work performed during the month; (3) sold inventory on account to customers for $200,000 that had a cost of $120,000; (4) collected $180,000 in cash from credit customers; and (5) paid on account to suppliers of inventory $145,000.

Analyze each transaction and show the effect of each on the accounting equation for a corporation.