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After finishing her first year of operations, Nicole used the debt-to-assets, asset turnover, and net profit margin ratios to determine how effective she was in running the business. Listed here are a few company transactions from the past quarter that may have influenced these ratios.
a. Customers used $200 of gift certificates to pay for spa services.b. Acquired, on account, equipment costing $320.c. Recorded spa treatment revenues of $1,500 on account.d. Incurred advertising expense of $40, paid in cash.e. Accrued $750 for utility bills.f. Received $50,000 cash from an investor in exchange for company shares.g. Received $2,500 cash by signing a short-term note payable.h. Recorded $1,800 in depreciation expense.
Required:Complete the following table, indicating the effects (account, amount, and direction) of each transaction.
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