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Show the effects on the financial statements using a horizontal statement model as outlined below.
1 Sold $30,000 in merchandise for cash2 Paid $5,000 for rent with cash3 Paid $10,000 in salaries to employees with cash4 Sold $25,000 in merchandise and customer paid on credit5 Collected $10,000 cash for transaction6 Purchased a building for $100,000 and took out a loan for the money7 Paid $1,200 for insurance
Balance Sheet Income StatementOwner's NetEvent No. Assets = Liabilities + Equity Revenue - Expenses = Income1 30,000 = + 30,000 30,000 - - = 30,0002 = + - = -3 = + - = -4 = + - = -5 = + - = -6 = + - = -7 = + - = -
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