Mateo Inc. is a retailer of men€™s and women€™s clothing aimed at college-age customers. Listed below are additional transactions that Mateo was considering at the end of the accounting period.

Required:Assuming that each had occurred during the fiscal year, complete the following tabulation, indicating the sign of the effect of each additional transaction (+ for increase, €” for decrease, and NE for no effect). Consider each item independently and ignore taxes.
a. Borrowed $3,000 on a line of credit with the bank.
b. Incurred salary expense of $1,000 paid for in cash.
c. Provided S2,000 of services on account.
d. Purchased $700 of inventory on account.
e. Sold $500 of goods on account. The related cost of goods sold was $300. Gross profit margin was 45% before thissale.

Transcribed Image Text:

ross Profit Percentage Transaction Total Asset Turnover Return on Assets a. b. C. d.