Jacob Folsom practices medicine under the business title Jacob Folsom, M.D., Professional Corporation (P.C.). During May his medical practice engaged in the following transactions:

May 1 Folsom deposited \(\$ 50,000\) cash in the business bank account. The business issued common stock to Folsom.

5 Paid monthly rent on medical equipment, \(\$ 700\).

9 Paid \(\$ 42,000\) cash to purchase land for an office site.

10 Purchased supplies on account, \(\$ 1,200\).

19 Paid \(\$ 1,000\) on account.

22 Borrowed \(\$ 20,000\) from the bank for business use. Folsom signed a note payable to the bank in the name of the business.

30 Revenues earned during the month included \(\$ 6,000\) cash and \(\$ 5,000\) on account.

30 Paid employee salaries ( \(\$ 2,400\) ), office rent ( \(\$ 1,500\) ), and utilities ( \(\$ 400\) ).

30 Declared and paid a cash dividend of \(\$ 4,000\).

Folsom's business uses the following accounts: Cash; Accounts Receivable; Supplies; Land; Accounts Payable; Notes Payable; Common Stock; Dividends; Service Revenue; Salary Expense; Rent Expense; Utilities Expense.

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1. Analyze each transaction of Jacob Folsom, M.D., P.C., as shown for the May 1 transaction:

May 1 The asset Cash is increased. Increases in assets are recorded by debits; therefore, debit Cash. The stockholders' equity is increased. Increases in stockholders' equity are recorded by credits; therefore, credit Common Stock.

2. Journalize each transaction. Explanations are not required.