Question: Refer to the previous problem In Problem Jan 2 Paid accrued interest

Refer to the previous problem.
In Problem
Jan. 2 Paid accrued interest in the amount of $ 52,000.
Apr. 30 Borrowed $ 550,000 from Commerce Bank; signed a 12- month, 6 percent interest-bearing note.
May 20 Sold merchandise for $ 6,000 cash plus harmonized sales tax at 14 percent, and realized a gross profit of 40 percent of sales.
June 3 Purchased merchandise for resale at a cost of $ 75,800; terms 2/ 10, n/ 30. July 5 Paid the invoice received on June 3.
Aug. 31 Signed a contract to provide security service to a small apartment complex and collected $ 6,840 of fees for six months in advance, including HST at the rate of 14 percent. (Record the collection in a way that will not require an adjusting entry at year- end.)
Dec. 31 Reclassified a long- term debt in the amount of $ 100,000 to a current liability.
31 Determined that salary and wages earned but not yet paid on December 31 totalled $ 85,000. Ignore payroll taxes.
31 Recorded income tax expense for the year in the amount of $ 125,000. The current income taxes payable were $ 93,000.
1. For each transaction (including adjusting entries) listed in the previous problem, indicate the accounts affected, amounts, and direction of the effects (+ for increases and – for decreases) on the accounting equation. Use the following headings:
2. For each transaction and related adjusting entry, state whether cash flow from operating activities is increased, decreased, or unchanged.

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