Ann and Greg Fenway run a small art gallery and custom framing business. Explain how the basic statement of financial position accounts of assets, liabilities, and shareholders' equity would be affected by each of the following transactions and activities:
a. Framing materials are purchased on credit.
b. Payment is made for the framing materials that were purchased previously.
c. Wages are paid to their assistant in the shop.
d. Pictures are purchased by the gallery for cash.
e. A picture is sold for cash, at a profit.
f. A receivable is collected on a framing project that was completed for a customer last month.
g. A loan from the bank is repaid, with interest.
h. Depreciation on the equipment is recognized.
i. Framing glue is spilled on some materials and they have to be discarded.