Indicate the effects of the transactions below on the T-accounts for Assets, Liabilities, and Owners’ Equity using the following format:

(1) 10,000 shares of $10-par value common stock are issued at par value for cash.
(2) Land and building costing $75,000 are acquired with the payment of $15,000 cash and the assumption of a 20-year, 8-percent mortgage for the balance. The land is to be stated at $10,000 and the building at $65,000.
(3) A used lathe is purchased for $3,250 cash.
(4) Raw materials costing $5,400 are acquired on account.
(5) Defective raw materials purchased in (4) and costing $750 are returned to the supplier.
The account has not yet been paid.
(6) The supplier in (4) is paid the amount due, less a2-percent discount for prompt payment.
(7) A fire insurance policy providing $100,000 coverage beginning next month is obtained.
The 1-year premium of $425 is paid in cash.

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Assets Liabilities Increases Decreases Decreases Increases Decreases Owners' Equity Increases (Dr.) (1) 100,000 (Cr.) (Dr.) (Cr.) (Dr.) (Cr.) 100,000 (1)