For each of the following events, indicate the amounts and direction of effects on the elements of the statement of financial position and statement of earnings. Using the following format, indicate + for increase, and - for decrease, and NE for no effect. Also, include the specific account name affected.

Albatros Ltd has a June 30 year end and it uses straight line depreciation. Albatros records adjustments and depreciation monthly.

Transactions:

Eg: July 31, 2020 - Rent in the amount of $1,500 is paid to the landlord for the month of July 2020.

1) July 1, 2020 - Paid insurance of $1,200.

2) July 1, 2020 - Bought $42,000 of machinery for $12,000 cash and issued 1,000 common shares for the remainder.

3) July 2, 2020 - Met with Sunshine Inc and signed a contract that they would purchase $190,000 of product this year.

4) July 15, 2020 - Purchased a delivery truck for $23,000 with a note payable (8% interest).

5) July 17, 2020 - Purchased merchandise inventory of $10,000 on account.

6) July 21, 2020 - Received the $899 utilities bill that is due Aug 1.

7) July 25, 2020 - Employees have worked $3,247 since the last pay day.

8) July 26, 2020 - Sold inventory to customers for $25,800, cash of $4,000 was received upon delivery. The inventory that was sold, had a cost of $9,000.

9) July 31, 2020 - The insurance that was paid for on July 1 represented insurance for July and August.

10) July 31, 2020 - The machinery that we previously bought on July 1, had a residual value of $2,000. It is estimated that the useful life of the machinery is 10 years.

11) July 31, 2020 - The company accrued interest owing on the note payable at the end of each month.

Answer rating: 100% (QA)

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