Gagnon's Autobody Ltd. repairs and paints automobiles after accidents. 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. Gagnon's Autobody purchases new spray-painting equipment. The supplier gives the company 60 days to pay.
b. The company pays for the spray-painting equipment that was purchased above.
c. Supplies such as paint and putty are purchased for cash.
d. The company pays for a one-year liability insurance policy.
e. The company pays its employees for work done.
f. A car is repaired and repainted. The customer pays the deductible required by her insurance policy, and the remainder of the bill is sent to her insurance company.
g. Cash is collected from the customer's insurance company.