Identifying account titles Listed are some independent hypothetical situations.

1 A company borrows $200 000 from the local bank and signs a six-month note for the loan.

2 A company purchases 400 ordinary shares of Woolworths Limited for $15 000.

3 A company purchases a block of land for $400 000 cash. An appraiser for the buyer valued the land at

$485 000.

4 A company buys three mobile phones for office use, for which it signs a note promising to pay $1500 within six months.

5 A company signs a lease agreement for a warehouse; the rent is $15 000 per month. Upon signing the document, the retailer pays $45 000 to the owner of the building (assume no security deposit).

6 A company purchases a new delivery truck for $63 000 cash that has a list price of $71 000.

7 A company acquires a patent on a new digital technology, paying $300 000 cash and signing a $600 000 note payable due in two years.
Indicate the appropriate account titles, if any, affected by each of the events described. Answer in terms of changes in account balances (increase/decrease). Include the dollar amount.