ASPE and indicate (I) Increase, (D) Decrease, or (NE) No Effect. Assets Liabilities Shareholders' Equity Net Income Purchased inventory for $80,000 Example I NE NE on account. Issued an $80,000 note payable 1. in payment of an account (see 2. 3. 4. 5. example above). Recorded accrued interest on the note from item 1 above. Borrowed $100,000 from the bank by signing a $104,000, six- month, non-interest bearing note. Recognized four months of interest expense on the note from item 3 above. Recorded cash sales of $81,900, which includes 5% provincial sales tax. Recorded salaries and wages expense of $35,000. The cash 6. paid was $25,000; the difference was due to various amounts withheld. 7. Recorded employer's payroll taxes