Question

Exercise 2-6 Your answer is partially correct. Try again. Concord Corporation had the following transactions. 1. Borrowed $6,535 from the bank by signing a note. 2. Paid $3,268 cash for a computer 3. Purchased $588 of supplies on account. (a) Indicate what accounts are increased and decreased by each transaction. Debit Analysis Credit Analysis 1. Increase the Asset Increase Increase the Liability Increase 2. no effect no effect 3. Increase the Asset Increase increase the Liability Increase (b) Journalize each transaction. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the accounit titles and enter 0 for the amounts.)

Answer 1

a) Analysis

	Debit Analysis		Credit Analysis
1.	Increase the assets	Cash	Increase the liability	Notes payable
2	Increase the assets	Computer	Decrease the assets	Cash
3	Increase the assets	Supplies	Increase the liability	Account payable

b) Journal entries

No	account and explanation	debit	credit
1	Cash	6535
	Notes payable		6535
	(To record borrow)
2	Computer	3268
	Cash		3268
	(To record computer purchased)
3	Supplies	588
	Account payable		588
	(To record purchase supplies)