Two Sides of a Transaction For each of the following transactions, show the effects on the entities involved. As was illustrated in the chapter, use the AL + OE equation to demonstrate the effects. Also name each account affected, show the dollar amount, and indicate whether the effects are increases or decreases. The following transaction is completed as an illustration.

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ILLUSTRATION The Denver General Hospital collects $1,000 from the Blue Cross Health Care Plan. A = Entity Cash Receivables Trucks L+ OE Payables Hospital +1,000 -1,000 Blue Cross -1,000 -1,000 1. Borrowing of $120,000 on a home mortgage from Fidelity Savings by Lauren Walker. 2. Payment of $10,000 principal on the preceding mortgage. Ignore interest. 3. Purchase of a 2-year subscription to Time magazine for $90 cash by Carla Paperman. 4. Purchase of trucks by the US. Postal Service for $10 million cash from the U.S. General Services Administration. The trucks were carried in the accounts at $10 million by the General Services Administration. 5. Purchase of U.S. government bonds for $100,000 cash by Lockheed Corporation. 6. Cash deposits of $11 on the returnable bottles sold by Safeway Stores to a retail customer, Philomena Simon. 7. Collections on open account of $100 by Sears store from a retail customer, Kenneth Debreu. 8. Purchase of traveler's checks of $1,000 from American Express Company by Michael Sharpe. 9. Cash deposit of $600 in a checking account in Bank of America by David Kennedy. 10. Purchase of a United Airlines "supersaver" airline ticket for $400 cash by Robert Peccher on June 15. The trip will be taken on September 10.