Business

The following transactions occurred during a recent year:a. Paid wages of $1,600 for the current period (example).b. Borrowed $8,000 cash from local bank using a short-term note.c. Purchased $3,200 of equipment on credit.d. Earned $640 of sales revenue; collected cash.e. Received $1,280 of utilities services, on credit.f. Earned $2,700 of service revenue, on credit.g. Paid $480 cash on account to a supplier.h. Incurred $110 of travel expenses; paid cash.i. Earned $640 of service revenue; collected half in cash, with balance on credit.j. Collected $180 cash from customers on account.k. Incurred $460 of advertising costs; paid half in cash, with balance on credit.Required:1. For each of the transactions, complete the table below, indicating the account, amount, and direction of the effect (+ for increase and - for decrease) of each transaction under the accrual basis. Include revenues and expenses as subcategories of stockholders' equity, as shown for the first transaction, which is provided as an example.Assets = Liabilities + Stockholders' Equitya Cash (1,600) Salaries & wages expense (1,600)b Cash 8,000 Notes Payable (short-term) 8,000 c Equipment 3,200 Accounts Payable 3,200 d Cash 640 Sales revenue 640e Accounts Payable 1,280 Utilities expense (1,280)f Accounts Receivable 2,700 Service revenue 2,700g Cash (480) Accounts Payable (480) h Cash (110) Travel expense (110)i Cash 320 Accounts Receivable 320 Service revenue 640j Cash 180 Accounts Receivable (180) k Cash (230) Accounts Payable 230 Advertising expense (460)2. Determine the company's preliminary net income.