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Fruity Farms was incorporated as a private company on January 1, 2017. The company's accounts included the

following at January 31, 2017:


      Accounts Payable$20,000    Land$100,000   Building 50,000    Notes Payable, due 2019 22,000   Bank Overdraft 9,000    Retained Earnings 74,000   Contributed Capital 75,000    Supplies 3,000   Equipment 47,000    

During the month of February, the company had the following activities:

  1. Paid a dividend to shareholders of $15,000.
  2. Repaid $10,000 cash to a local bank.
  3. Issued 500 shares for $50,000 cash.
  4. Purchased equipment for $30,000, paying $3,000 in cash and signing a note due in six months for the balance.
  5. Purchased supplies for $3,000 on account.


1. Analyze transactions (a)-(e) to determine their effects on the accounting equation. 

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