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The Marchetti Soup Company entered into the following transactions during the month of June: (1) purchased inventory on account for $230,000 (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 $230,000 (assume Marchetti uses a perpetual inventory system); (2) paid $57,000 in salaries to employees for work performed during the month: (3) sold merchandise that cost $154,000 to credit customers for $285,000; (4) collected $265,000 in cash from credit customers; and (5) paid suppliers of inventory $210,000. 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 Pald-in capital Retained Earnings (1) (2) (3)

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