The following are independent transactions for different businesses.
| 1. | Lagace Enterprises signs a $25,300 note and gives cash of $2,800 to a supplier in exchange for equipment it purchased June 1. The term of the note is one year and the interest rate is 8% due at maturity. | |
| 2. | Mowat Consultants orders supplies on July 4 and agrees that it will pay $1,330 within 30 days from the date of delivery. Delivery is expected in 7 days. | |
| 3. | Meagher Manufacturing purchases a parcel of land for $148,500 cash on August 15. An appraiser for Meagher valued the land at $149,400. | |
| 4. | Shak Insurance Co. receives $4,300 cash on Feb. 1 from a customer Larson Repairs Ltd. for coverage for a one-year policy. Answer from the point of view of Shak Insurance Co. | |
| 5. | Shak Insurance Co. receives $4,300 cash on Feb. 1 from a customer Larson Repairs Ltd. for coverage for a one-year policy. Answer from the point of view of Larson Repairs Ltd. |
For each transaction, indicate the basic type of account debited/credited (asset, liability, owner’s equity), specific account debited/credited, the effect of a debit/credit on the account, and the amount. (If an amount decreases the balance of Asset, Liability or Owner’s equity then enter with negative sign e.g. -15,000 or in parenthesis e.g. (15,000). Select NA for No Entry.)
| Date | Basic Type | Increase/Decrease | Specific Account | Amount | |||||||
| June | 1 | Debit | AssetLiabilityOwner’s EquityNA | IncreaseDecreaseNA | $ | ||||||
| Credit | AssetLiabilityOwner’s EquityNA | IncreaseDecreaseNA | |||||||||
| Credit | AssetLiabilityOwner’s EquityNA | IncreaseDecreaseNA | |||||||||
| July | 4 | Debit | AssetLiabilityOwner’s EquityNA | IncreaseDecreaseNA | |||||||
| Credit | AssetLiabilityOwner’s EquityNA | IncreaseDecreaseNA | |||||||||
| Aug. | 15 | Debit | AssetLiabilityOwner’s EquityNA | IncreaseDecreaseNA | |||||||
| Credit | AssetLiabilityOwner’s EquityNA | IncreaseDecreaseNA | |||||||||
| Feb. | 1 | Debit | AssetLiabilityOwner’s EquityNA | IncreaseDecreaseNA | |||||||
| Credit | AssetLiabilityOwner’s EquityNA | IncreaseDecreaseNA | |||||||||
| Feb. | 1 | Debit | AssetLiabilityOwner’s EquityNA | IncreaseDecreaseNA | |||||||
| Credit | AssetLiabilityOwner’s EquityNA | IncreaseDecreaseNA | |||||||||
