Required information E8-5 (Algo) Determining Financial Statement Effects of an Asset Acquisition and Depreciation (Straight- Line Depreciation) LO8-2, 8-3 [The following information applies to the questions displayed below.) Steve's Outdoor Company purchased a new delivery van on January 1 for $59,000 plus $5,000 in sales tax. The company paid $14,000 cash on the van (including the sales tax), signing an 8 percent note for the $50,000 balance due in nine months (on September 30). On January 2, the company paid cash of $850 to have the company name and logo painted on the van. On September 30, the company paid the balance due on the van plus the interest. On December 31 (the end of the accounting period), Steve's Outdoor recorded depreciation on the van using the straight-line method with an estimated useful life of 5 years and an estimated residual value of $5,900. Stockholders' Equity Required: 1. Indicate the effects of each transaction on the accounting equation. (Enter decreases to account categories as negative amounts. If the transaction does not impact the accounting equation choose "No effect" in the first column under "Assets".) E8-5 Part 1 Date Assets January 1 Equipment (Van) Cash January 2 Equipment (Van) Cash September Cash 30 Liabilities 64,000 (14,000) 850 (850) Short term note payable (53,000) 50,000 Interest expense 3,000