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The following are transactions for an organization manufacturing sports-shoe. How would each transaction affect the Balance Sheet Equation? Write the name of the account in

The following are transactions for an organization manufacturing sports-shoe. How would each transaction affect the Balance Sheet Equation? Write the name of the account in the appropriate column. Mark, 'NC' for No Change, I for increase and D for decrease.

Transactions

Assets

Liabilities

Owners equity

Example: Borrowed money from a bank

I

I

NC

Received interest from government bonds

Sold furniture for cash at a price equal to its book value

Purchased office computer on credit

Accounted for depreciation on delivery truck

The owner invested cash in the business

Collected cash for goods previously sold on credit

Returned for credit some of the goods previously purchased on credit

Paid salaries to employees

Paid back loan borrowed from bank

Received interest on investment in government bonds

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