6.For each transaction numbered 1 through 5 below, identify which effect(s) (a through d) that each transaction would have on the current and debt/equity ratios. You may use each letter more than once...

6.For each transaction numbered 1 through 5 below, identify which effect(s) (a
through
d) that each transaction would have on the current and debt/equity ratios. You may use each letter more than once or not at all. Some transactions have two answers.

____1.Equipment is purchased by incurring a long-term note payable and paying the balance in cash

____2.Paid for transportation of equipment shipped from a supplier

____3.Depreciated the equipment during the first year of use

____4.Paid for lubrication and periodic maintenance of the equipment

____5.Sold the equipment, receiving more money than its book value

7.For each transaction numbered 1 through 6 below, identify which accounting treatment—capitalized or expensed—should be used to properly account for the transactions. You may use each letter more than once or not at all.

______1.Freight costs on production equipment in transit

______2.Sales tax on equipment purchase

______3.Damaged during installation and repair costs

______4.Interest paid on construction loan during the building period

______5.Survey costs by contractor

______6.Construction insurance to cover theft or vandalism during building construction