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During 2017, Oriole Company entered into the following transactions.
1. Purchased equipment for $308,520 cash.
2. Issued common stock to investors for $138,170 cash.
3. Purchased inventory of $66,840 on account.
Problem 1: Using the following tabular analysis, show the effect of each transaction on the accounting equation. For Retained Earnings, use separate columns for Revenues, Expenses, and Dividends if necessary.(If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 3-3 for example.)
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