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

The following are six journal entries KLP Engineering, Inc., made during the month of April.

Requirement 1. For each transaction shown, determine the accounts affected, the type of account, whether the account increases or decreases, and whether it would be recorded in the journal on the debit or credit side. The first transaction has been analyzed for you.AppendixLO1

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Apr 1 Paid advertising expense, $340. 3 Paid $7,800 cash to purchase a new piece of equipment. 5 Issued common stock in exchange for $18,000 cash. 12 17 Borrowed $12,000 on a note payable from the bank. Paid monthly telephone bill, $280. Purchased supplies for $165, paid cash.