Transaction Analysis: Inventory and Current Liabilities Use the balance sheet equation to analyze the effects of the following transactions: 1. Jills Slipper Shop was formed with an original investment of $100,000 in ex- change for common stock. 2. Jills signed a 12-month rental agreement for its retail shop. Jills pays a de- posit of $2,000, along with the first months rent of $2,000. 3. Jills ordered and received merchandise for resale on account at an invoice cost of $32,000. 4. Jills returned $1,800 worth of merchandise because it has been water- stained in transit. 5. Jills paid the balance of its liability for the merchandise. 6. Jills two employees worked in the shop for the first month, but Jills cannot pay them until the end of the next month. Each employee earns a salary of $2,000 and commissions of $1,200. Ignore any payroll taxes or other em- ployer obligations that may normally be recorded in conjunction with payroll transactions. 7. What effect does not paying the employees have on Jills balance sheet? What effect is it likely to have on the employees? Which is more significant? 8. What is the long-term effect of not paying employees? What are the possible long-term effects of not paying suppliers? In other words, if Jills continues to defer its employees salaries and commissions, and if Jills fails to pay for its merchandise, what will happen to the shop?