Transaction Assets Liabilities. Owners' Equity Net Income Purchased inventory for $80,000 1. on account. (Assume a perpetual system is used.) Increase Increase No Effect No Effect v Issued an $80,000 note payable in payment of an account (see item 1 above). Decrease Increase No Effect v No Effect Recorded accrued interest on the 3. Increase Increase No Effect Increase note from item 2 above. Borrowed $100,000 from the bank 4. by signing a $104,000, six-month, non-interest-bearing note. Increase Increase No Effect No Effect 5. Recognized four months of interest expense on the note from item 4 above No Effect Increase No Effect Decrease 6. Recorded cash sales of $81,900, which includes 5% provincial sales tax. Increase Increase Increase Increase Recorded salaries and wages 7. expense of $35,000. The cash paid was $25,000; the difference was due to various amounts withheld. Decrease Decrease No Effect Decrease 8. Recorded employer's payroll taxes. No Effect No Effect No Effect Decrease Accrued accumulated vacation pay. No Effect Increase Decrease Decrease 10. Signed a $2-million contract with Construction Corp. to build a new plant. Increase Increase Increase No Effect 11. Recorded bonuses due to employees. No Effect No Effect No Effect Decrease 12 Recorded a provision on a lawsuit 12. 12 that the company will probably lose. Decrease Increase Decrease Decrease 13. Accrued assurance-type warranty expense. No Effect Increase No Effect Decrease Paid warranty costs that were 14. Decrease Decrease No Effect Decrease accrued in item 13 above. Recorded sales of product and 15. separately sold service-type Increase No Effect No Effect Increase warranties. Paid warranty costs under 16. Decrease 3 Decrease No Effect Decrease contracts from item 15 above. Recognized warranty revenue (see 17. item 15 above). Increase No Effect No Effect Increase warranties. Paid warranty costs under 16. Decrease contracts from item 15 above. Decrease No Effect Decrease Recognized warranty revenue (see 17. Increase No Effect No Effect Increase item 15 above). Recorded estimated liability for 18. No Effect Increase No Effect Decrease premium claims outstanding. Recorded the receipt of a cash down payment on services to be 19. Increase No Effect Increase Increase performed in the next accounting period. Received the remainder of the 20. 20 contracted amount and performed Increase No Effect No Effect Increase the services related to item 19 above