Journalizing transactions (Learning Objectives 2 & 3) 10–15 min.

The following are six transactions for Wissam Printing, Inc., during the month of May.

1. Stockholders invest $190,000 cash to start the business.

2. Purchased three photocopy machines for $600,000, paying $200,000 cash and signing a 5-year, 4% note for the remainder.

3. Purchased $6,000 paper supplies on credit.

4. Cash received for photocopy services amounted to $9,000.

5. Paid $800 cash for TV advertising.

6. Paid $600 on account for paper supplies purchased in transaction 3.

Requirement 1. Complete the following table. For each transaction shown, determine the accounts affected, the type of account, whether the account increased or decreased, and whether it would be recorded in the journal on the debit or credit side.

Accounts Affected Cash Common Stock Account Type Assets Stockholder’s equity Dr. or Cr.

Dr.

Cr.

Transaction Number AppendixLO1