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The Marchetti Soup Company entered into the following transactions during the month of June: (1) purchased inventory on account for $175,000 (assume Marchetti uses a

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The Marchetti Soup Company entered into the following transactions during the month of June: (1) purchased inventory on account for $175,000 (assume Marchetti uses a perpetual inventory system): (2) paid $46,000 in salaries to employees for work performed during the month; (3) sold merchandise that cost $132,000 to credit customers for $230,000; (4) collected $210,000 in cash from credit customers, and (5) paid suppliers of inventory $155,000. Analyze each transaction and show the effect of each on the accounting equation for a corporation (Amounts to be deducted should be indicated by a minus sign. Enter the net change on the accounting equation.) Assets Liabilities + Paldan capital + Retained Earnings (1) (2) (3) (4)

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