The Marchetti Soup Company entered into the following transactions during the month of June: (1) purchased inventory on account for $160,000 (assume Marchetti uses a perpetual inventory system); (2) paid $43,000 in salaries to employees for work performed during the month; (3) sold merchandise that cost $126,000 to credit customers for $215,000; (4) collected $195,000 in cash from credit customers; and (5) paid suppliers of inventory $140,000.

Analyze each transaction and show the effect of each on the accounting equation for the corporation. (Amounts to be deducted should be indicated by a minus sign. Enter the net change for items which affect more than one account in an account category (i.e., assets, liabilities, etc.))

Assets = Liabilities + Paid in Capital + Retained earnings