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The analytical framework used to evaluate transactions is reproduced below:

Cash

+

Non-Cash Assets

=

Liabilities

+

Contributed Capital

+

Accumulated Other Comprehensive Income

+

Retained Earnings

Using this analytical framework, indicate the effect of each of the following transactions for Staples Corporation:

1.	Staples recorded cash sales of $25,000. The merchandise had cost $19,000 to manufacture.
2.	Staples purchased $8,500 of raw material inventory on account.
3.	The company paid $2,500 for property insurance for the next 12 months.
4.	Staples paid its employees $5,000 for the month.
5.	The company purchased $1,000 of supplies on account.
6.	Staples issued $25,000 of long-term debt.
7.	The company used $10,000 of excess cash to purchase marketable securities.
8.	Staples purchased a machine for $16,000 using $8,000 cash with the balance on account.
9.	Staples paid $2,500 for interest expense on the long-term debt.
10.	At the end of the year the marketable securities that Staples purchased in transaction 7 were now worth $14,500.
11.	Depreciation for the period was $1,500.
12.	Staples examined the equipment and determined that its fair value was $10,000.

ANS:

Cash

+

Non-Cash Assets

=

Liabilities

+

Contributed Capital

+

Accumulated Other Comprehensive Income

+

Retained Earnings

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