Indicate the effects of the transactions above on the basic accounting equation.

(If possible, please tell me how to form a cash flow statement of these transactions.)

"Application Problem 2-34 A.J. Smith Company started business on January 1, 2016, and the following transactions occurred in its first year: On January 1, the company issued 12,000 common shares at $25 per share On January 1, the company purchased land and a building from another company in exchange for $80,000 cash and 6,000 shares. The land's value is approximately one quarter of the total value of the transaction. (Hint: You need to determine a value for the shares using the information given in transaction 1, and the land and building should be recorded in separate accounts.) On March 31, the company rented out a portion of its building to Frantek Company. Frantek is required to make quarterly payments of $7,000 on March 31, June 30, September 30, and December 31 of each year. The first payment, covering the period from April 1 to June 30, was received on March 31, and the other payments were all received as scheduled 1. 2. 3. 4. Equipment worth $120,000 was purchased on July 1, in exchange for $60,000 cash and a one-year note with a principal amount of $60,000 and an interest rate of 10%. No principal or interest payments were made during the year 5. Inventory costing $250,000 was purchased on account. 6. Sales were $350,000, of which credit sales were $300,000 7. The inventory sold had a cost of $180,000 8. Payments to suppliers totalled $200,000 9. Accounts receivable totalling $200,000 were collected 10. Operating expenses amounted to $50,000, all of which were paid in cash 11. The building purchased in transaction 2 is depreciated using the straight-line method, with an estimated useful life of 20 years and an estimated residual value of $30,000 12. The equipment purchased in transaction 4 is depreciated using the straight-line method, with an estimated useful life of 10 years and an estimated residual value of $5,000. Because the equipment was purchased on July 1, only a half year of depreciation is recognized in 2016 13. Dividends of $20,000 were declared during the year, of which $5,000 remained unpaid at year end 14. Interest expense on the note payable from transaction 4 was recorded