The Draper Company Records these journal entries:

Purchase of equipment; signed a 5-year note payable $27

Accrued Wages Payable $12

Earned portion of Unearned Revenue $16

Required: Indicate the net effect of these journal entries on the following items. Indicate the dollar amount of the effect and the direction of the effect. (Example: $13 Increase, or $8 Decrease, or NO EFFECT)

a) Net Income $_______________ b) Total Assets $_______________ c) Total Liabilities $_______________

d) Retained Earnings $_______________ e) Total Equity $_______________ f) Working Capital $_______________