1. Analyze the changes in this schedule for each transaction, and then explain the transaction. Transaction (a) is an example:
a. Cash increased $ 75,000, and Contributed capital (shareholders equity) increased $ 75,000. Therefore, transaction (a) was an issuance of shares of the corporation for $ 75,000 cash.
2. Based only on the preceding schedule after transaction (j), prepare a statement of earnings, a statement of shareholders equity, and a statement of financial position.
3. For each of the transactions, indicate the type of effect on cash flows (O for operating, I for investing, or F for financing) and the direction (+ for increase and for decrease) and amount of the effect. If there is no effect, write none.The first transaction is provided as an example.