The abridged balance sheet for Roche Ltd at 31 August 2016 was as follows:

The following transactions occurred during September: 

a. Paid $ 100 000 of accounts payable, 

b. Received $300 000 from accounts receivable, 

c. Purchased inventory on credit for $200 000. 

d. Made credit sales of $700 000 (COGS was $450 000). 

e. Administrative expenses of $30000 were paid in cash, 

f. Depreciation of $10 000 was recognised, 

g. Prepayments of $10 000 expired during the month, 

h. Dividends of $20 000 were paid, 

i. Paid back $100 000 on the loan, 

j. Issued additional shares worth $500 000. 

k. Paid the wages bill of $50 000.

Required:
1. Show the effect of the above transactions on the accounting equation.
2. Prepare journal entries for each transaction and determine the balances of the accounts.
3. What is the effect on net profit and total assets? Write 'increase', 'decrease' or 'no effect' for each transaction.

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Assets Cash Accounts receivable Inventory Prepayments Equipment Accumulated depreciation $ 110000 Accounts payable 410000 Long-term loan 610000 Share capital 80000 Retained profits 610000 Liabilities and shareholders' equity 140 000 1680 000 210000 310000 910000 250 000 1680.000