1 a) Fill in the blanks with either debit or credit

	What increases the account?	What decreases the account?	What is the normal balance?
Assets
Liabilities
Equity
Revenue
Gains
Expenses
Losses

b) Based on the following information, prepare a balance sheet.

Current Assets = $50,000; Property, Plant & Equipment = $125,000;

Accumulated Depreciation = $25,000; Accounts Payable = $10,000;

Notes Payable = $15,000; Total Liabilities = $50,000

c) Prepare Adjusting Journal Entries for the following monthly transactions that occurred during the month of June 2010: (a) payment of $40,000 in employee salaries; (b) $70,000 in cash sales; (c) $30,000 in credit sales; (d) $5,000 depreciation expense on equipment.