Question

CALCULATOS STANDARD VIEW PRINTER VERSION BACK NEX Exercise 2-06a-b Sunland Industries had the following transactions. 1. Borrowed $5,900 from the bank by signing a note 2. Pald $3,658 cash for a computer. 3. Purchased $1,003 of supplies on account. Indicate what accounts are increased and decreased by each transaction Debit Analysis 1. Increase the ability Credit Analysis Notes Payable 2 3. Journalize each transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select " Entry" for the account titles and enter for the amounts.) No. Account Titles and Explanation Debit Credit 1. 500 2.

Answer 1

1)	Borrowed $5900 from the bank by signing a note
	Increase in Liability - Notes payable a/c
	Increase in assets - Bank a/c
	Journal Enrty
		Debit	Credit
	Bank	$5900
	To Notes Payable		$5900
2)	Paid $3658 cash for a computer
	Decrease in asstes - Cash a/c
	Increase in assets - Computer a/c
	Journal Enrty
		Debit	Credit
	Computer	$3658
	To Cash		$3658
3)	Purchased $1003 of supplies on account'
	Increase in assets - Supplies a/c
	Increase in liabilities - Accounts payable a/c
	Journal Enrty
		Debit	Credit
	Supplies	$1003
	To Accounts payable		$1003