The following transactions occurred during a recent year:

1. Paid wages of $1,400 for the current period (example).
2. Borrowed $7,000 cash from local bank using a short-term note.
3. Purchased $2,800 of equipment on credit.
4. Earned $560 of sales revenue; collected cash.
5. Received $1,120 of utilities services, on credit.
6. Earned $2,370 of service revenue, on credit.
7. Paid $420 cash on account to a supplier.
8. Incurred $95 of travel expenses; paid cash.
9. Earned $560 of service revenue; collected half in cash, with balance on credit.
10. Collected $150 cash from customers on account.
11. Incurred $400 of advertising costs; paid half in cash, with balance on credit.

Required:

1. For each of the transactions, complete the following table, indicating the account, amount, and direction of the effect (+ for increase and for decrease) of each transaction under the accrual basis. Include revenues and expenses as subcategories of stockholders equity, as shown for the first transaction, which is provided as an example.
2. Determine the companys preliminary net income.

For each of the transactions, complete the following table, indicating the account, amount, and direction of the effect (+ for increase and for each transaction under the accrual basis. Include revenues and expenses as subcategories of stockholders' equity, as shown for the first transa provided as an example. (Enter any decreases to account balances with a minus sign.) Assets Liabilities Stockholders' Equity Salaries and Wages Expense a. Cash (1,400) (1,400) b. c. d. e. f. g. h. i. j