Question 3 (15 points] Southgate Inc. recorded the following transactions during November, as well as some items requiring adjusting transactions at month-end. Indicate whether each transaction or adjusting entry would cause an increase ( +). decrease ( - ), or has no effect (NE) on each of the components of the accounting equation. If a transaction causes a decrease in one component of the accounting equation and also an increase in the same component but in a different account, select ( +/- ). A = L + E a) November 4: $1,400 of furniture purchased on credit in an earlier transaction was found to be damaged. Southgate Inc. returned it to the supplier. b) November 10: Southgate Inc. paid $100 for this month's utilities bill received today. c) November 7: Shawna Cameron (a shareholder), received share capital in Southgate Inc., after investing $45,000 cash and $15,000 worth of supplies in Southgate Inc. d) November 4: Southgate Inc. bought $2,250 of equipment, using $500 cash and $1,750 on account. e) At month-end: This month's advertising bill for $1,500 is unrecorded and unpaid. f) November 25: Shawna Cameron (a shareholder), received share capital in Southgate Inc., after investing $10,000 cash and $25,000 worth of equipment in Southgate Inc. g) November 3: Southgate Inc. purchased a $42,750 truck by borrowing the amount from the bank through a short-term note payable. h) November 12: Shawna Cameron (a shareholder), received share capital in Southgate Inc., after investing $50,000 cash into the business. i) At month-end: $170 of interest has accrued on a note payable and is unrecorded. i) At month-end: A review of the $6,000 unadjusted balance in the prepaid insurance account shows a remaining balance of $1,800 at the end of the month. k) November 23: Southgate Inc. paid $2,000 for equipment purchased today. 1) At month-end: $1,550 of the television advertising paid for in advance has been used. m) November 19: Southgate Inc. bought $700 of supplies paying $100 cash and $600 on account. n) November 10: Southgate Inc. returned $500 of defective supplies today that were originally purchased for cash o) At month-end: $600 of property taxes have accrued and are unrecorded. Activate Windows