Changes in Account Balances The balances in two accounts are affected by each of the following transactions. For each transaction, indicate (1) the accounts in which the transactions are recorded, (2) whether the balances increase or decrease, and (3) whether the accounts are debited or credited when the transaction is recorded:

. Accounts receivable of $45,000 are collected.

. A two-year insurance policy is purchased for $30,000.

. Depreciation expense of $11,000 is recorded.

. Capital stock is issued for $95,000.

. Sales of $320,000 are made on account.

. Payment for engineering services of $25,000 is received in advance.

g. Inventory costing $260,000 is purchased on account.

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