Question - Company XYZ entered in the following transactions during the month of June:
(1) purchased inventory on account for $165,000 (assume XYZ uses a perpetual inventory system);
(2) paid $40,000 in salaries to employees for work performed during the month;
(3) sold merchandise that cost $120,000 to credit customers for $200,000;
(4) collected $180,000 in cash from credit customers;
(5) paid suppliers of inventory $145,000.
Analyze each transaction and show the effect of each on the accounting equation for a corporation.