Analyze separately each of the following transactions using the format illustrated at the end of the exercise. In each situation, explain the debit portion of the transaction before the credit portion.

a On May 1, Laura Blair organized Blair Placement, an employment service, by opening a bank account in the company name with a deposit of $90,000.

b On May 3, purchased land and an office building for a total price of $124,000, of which $64,000 was applicable to the land and $60,000 was applicable to the build¬

ing. A cash down payment of $50,000 was made and a note payable was issued for the balance of the purchase price.

c On May 6, office equipment was purchased on credit from Office Interiors at a price of $7,400. The account payable was to be paid by May 31.

d On May 7, a portion of the office equipment purchased on May 6 was found to be defective and was returned to Office Interiors. That company agreed that Blair Placement would not have to pay for the defective equipment, which had been priced at $800.

e On May 30, the remaining liability of $6,600 to Office Interiors was paid in full.

Note: The type of analysis to be made is shown by the following illustration, using transaction a as an example.

a (1) The asset Cash was increased. Increases in assets are recorded by debits. Debit Cash, $90,000.

(2) The owner’s equity was increased. Increases in owner’s equity are recorded by credits. Credit Laura Blair, Capital, $90,000.