Debit and Credit Effects of Transactions}

Mackenzie Corporation was involved in the following transactions during the current year:

a. Mackenzie borrowed cash from the local bank on a note payable.

b. Mackenzie purchased operating assets on credit.

c. Mackenzie declared and paid dividends in cash.

d. Mackenzie purchased supplies on credit.

e. Mackenzie used a ṕortion of the supplies purchased in transaction \(d\).

f. Mackenzie provided services in exchange for cash from the customer.

g. A customer received services from Mackenzie on credit.

h. The owners invested cash in the business in exchange for common shares.

i. The payable from transaction \(d\) was paid in full.

j. The receivable from transaction \(g\) was collected in full.

k. Mackenzie paid wages in cash.

\section*{Required:}

Prepare a table like the one shown below and indicate the effect on assets, liabilities, and shareholders' equity. Be sure to enter debits and credits in the appropriate columns for each of the transactions. Transaction \(a\) is entered as an example:

Exercise

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Assets Liabilities + Shareholders' Equity Share Retained Capital Earnings (a) Increase (Debit) Increase (Credit)