Moksh Ltd. started business on January 1, 2024. The following transactions occurred in 2024: 

1. On January 1, the company received $700,000 when it issued 10,000 common shares. 

2. On January 1, the company borrowed $250,000 from the bank at 6% annual interest. The loan principal is due in three years. 

3. On January 3, the company purchased land and a building for a total of $700,000 cash. The land was recently appraised at a fair market value of $400,000. 

4. Inventory costing $190,000 was purchased, of which $100,000 was on account. 

5. Sales to customers totalled $310,000. Half of these sales were on account, and the balance were cash sales.

6. The cost of the inventory that was sold to customers in transaction 5 was $128,000. 

7. Collections from customers on account totalled $132,000. 

8. Payments to suppliers on account totalled $95,000. 

9. During the year, employees earned wages of $96,000, of which $4,200 was unpaid at year end. 

10. The interest on the bank loan was recognized and paid for the year. 

11. The building was estimated to have a useful life of eight years and a residual value of $20,000. The company uses the straight-line method of depreciation. 

12. The company declared dividends of $15,000 during the year, of which half were to be paid in January 2025.

Required 

a. Analyze the effects of each transaction on the basic accounting equation, using a template like the one below:b. Prepare a statement of income, a statement of changes in equity, a statement of financial position (unclassified), and a statement of cash flows for 2024.

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Assets Date/Ref. Cash A/R Inv. Building Liabilities Wages Land A/P Payable S/H Equity Dividends Loan Common Payable Payable Shares R/E R/E/DD