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Question 1.1 (Total: 10 marks) For the following list of transactions, complete the table using ASPE and indicate (1) Increase, (D) Decrease, or (NE) No

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Question 1.1 (Total: 10 marks) For the following list of transactions, complete the table using ASPE and indicate (1) Increase, (D) Decrease, or (NE) No Effect Assets Liabilities Shareholders Equity Net Income Example NE NE 1 2 3. Purchased inventory for $80,000 on account. Issued an $80,000 note payable in payment of an account (see example above) Recorded accrued interest on the note from item 1 above. Borrowed $100,000 from the bank by signing a $104,000, six-month, non- interest bearing note Recognized four months of interest expense on the note from item 3 above Recorded cash sales of $81,900, which includes 5% provincial sales tax Recorded salaries and wages expense of $35,000. The cash paid was $25,000; the difference was due to various amounts withheld. Recorded employer's payroll taxes 4. 5. 6. 7

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