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Sarah's Floral Arrangements, Inc. had the following transactions in the month of January: The owners invested $140,000 (the par value of the stock) for 20,000
Sarah's Floral Arrangements, Inc. had the following transactions in the month of January: The owners invested $140,000 (the par value of the stock) for 20,000 shares of common stock; the company purchased furniture for the florist shop in the amount of $22,000, which was put on a credit account with the vendor; and the company paid employees wages of $14,000 in cash. What is the effect of each of these transactions on the accounting equation? Abbreviations used: Acc. OCl= Accumulated Other Comprehensive Income; Beg. R/E = Beginning Retained Earnings; Contr. Cap. = Contributed Capital. )
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