Show how each of the following transactions affects the basic accounting equation (assets = liabilities + shareholders' equity), and identify the ones that have an immediate impact on the statement of earnings and/or the statement of cash flows:

a. Bought parts and supplies inventory for $15,000, on account. (The company repairs and services vehicles, and will use these parts and supplies for repairs.)

b. Paid $12,000 to suppliers for the purchases that were made in transaction "a."

c. Received $20,000 in cash for repairing and servicing vehicles; another $5,000 of work was done on account.

d. Collected $3,000 from customers for the work that was done on account in transaction "c."

e. In the repair work done in transaction "c," $10,000 of the parts and supplies inventory was used.

f. The owners invested a further $25,000 in the business, and shares were issued to them.

g. Received utility (electricity, water, and telephone) bills for the month that totalled $600. Paid all these bills except for $100 that will be paid next month.

h. Borrowed $50,000 from the bank.

i. Bought a vehicle hoist for $45,000.

j. Paid the employees their wages for the month, $9,000.

k. Recorded accrued interest of $200 on the bank loan. The interest will be paid when the loan is due, in one year.

1. Some of the parts that were used in the repair of the vehicles have warranties. The company estimates that $500 in free replacements will be necessary in the future, under the terms of the warranties. (Hint: This is an expected future cost to the company. Remember that if revenue is recognized in the current period, the matching principle requires that all the associated expenses be recognized in the same account­ing period.)