1. The following events occurred during the most recent month of operations of a local corporation:

a. The company completed the issuance of 50,000 additional shares of stock for $150,000. The stock has a $2 par value.

b. The company purchased a new delivery truck. The truck cost $108,000. It has an estimated useful life of 5 years and an estimated salvage value of $14,000.

c. The business paid $2,500 monthly rent and renewed its annual property insurance policy for a premium of $2,250.

d. The business purchased land and a building with appraised values of $62,000 and $278,000, respectively, for a total purchase price of $360,000. The building is estimated to have a useful life of 30 years and no salvage value. Allocate the actual purchase amount to the two assets in proportion to their appraised values.

e. The business sold products to customers for $91,000 cash and $169,000 on the account. The goods sold had a cost of $154,000.

f. Paid salaries and wages of $38,000 for the month.

g. Paid the bill for electricity and gas in the amount of $1,750.

h. Purchased $1,700 of supplies for cash.

i. Paid other operating expenses of $41,000 for the month.

Required:

1. Show how each of these events affects the business accounts. You may prepare journal entries, use the accounting effects template from your textbook or show in some other way which accounts are affected, and whether each account increases or decreases. You may assume that if you show a debit to a particular account in a journal entry, I know whether the debit means an increase or a decrease to that account.