1. A business purchased, and recorded, machinery on May 1. The machinery was used in production during May. The following Journal Entry will be made by the business on May 31.

The debit will (increase/decrease) the (blank) account. The debit account appears as a (an) (Revenue/Expense) on the (blank, Financial Statement). The credit will (increase/decrease) the (blank) account. The credit account reduces (blank) section of the (blank, Financial Statement)

2. A business issued, and recorded, a 3-month Note Payable on July 1 to buy equipment. The business will make the following Journal Entry to accrue interest on July 31.

The debit will (increase/decrease) the (blank) account. The debit account appears as a (an) (Revenue/Expense) on the (blank, Financial Statement). The credit will (increase/decrease) the (blank) account. The credit account appears in the (blank) section of the (blank, Financial Statement)

3.

A business issued, and recorded, a 5-year Note Payable on August 1. The following Journal Entry will be made by the business on August 31, when making the first payment.

A (debit/credit) will (increase/decrease) the Interest Expense account. A (debit/credit) will (increase/decrease) the Notes Payable account. A (debit/credit) will (increase/decrease)the Cash account. In this problem, Notes Payable appears in the (blank) section of the (blank, Financial statement).