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E$3-8($Algo$)$ Determining Accounting Equation Effects and Net Income $[$LO $3-2,$ LO $3-3]$

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porints

The following transactions occurred during a recent year:

a$.$ Patc wages of $$750$ for the current perlod $($example$).$

b$.$ Borrowed $$3,750$ cash from local bank using a short$-$term note.

c$.$ Purchased $$1,500$ of equipment on credit.

d$.$ Earned $$300$ of sales revenue; collected cash.

e$.$ Recelved $$600$ of utilities services, on credit.

f$.$ Earned $$1,280$ of service revenue, on credit.

$9.$ Paid $$225$ cash on account to a supplier

h$.$ Incurred $$55$ of travel expenses; paid cash.

i$.$ Earned $$300$ of senice revenue; collected half in cash, with balance on credit.

j$.$ Collected $$85$ cash from customers on account.

$k.$ Incurred $$240$ of advertising costs; paid half in cash, with balapce on credit.

Required:

For each of the transactions, complete the following table, indicating the account, amount, and direction of the effect $(+$ for increase and $-$ for decrease$)$ of each transaction under the accrual basis. If a transaction affects a temporary account, include the account name under "Temporary Accounts" and the financial effect under $"$NI$."$ Do not enter an amount under "Stockholders' Equity" for these transactions; thelr impact on stockholders' equity will occur later when the temporary accounts are closed at year$-$end. Do not enter No Effect $($NE$)$ or zero for any cells without an effect for each transaction despite what may be shown in textbook demonstration cases as these cells should be left blank.

Determine the company's prelliminary net income.

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