E2-7 Below are several external transactions for Hokies Company. Account Debited Equipment Account Credited Cash Example: Purchase equipment in exchange for cash. 1. Pay a cash dividend. 2. Pay rent in advance for the next three months. 3. Provide services to customers on account. 4. Purchase office supplies on account 5. Pay salaries for the current month. 6. Issue common stock in exchange for cash. 7. Collect cash from customers for services provided in (3) above. 8. Borrow cash from the bank and sign a note. 9. Pay for the current month's utilities. 10. Pay for office supplies purchased in (4) above. Hokies uses the following accounts: Accounts Payable Equipment Accounts Receivable Cash Supplies Utilities Expense Prepaid Rent Rent Expense Service Revenue Common Stock Notes Payable Retained Earnings Salaries Payable Salaries Expense Dividends Required: Indicate which accounts should be debited and which should be credited. E2-8 Terrapin Company engages in the following external transactions for November 1. Purchase equipment in exchange for cash of S23,400. 2. Provide services to customers and receive cash of $6,800. 3. Pay the current month's rent of $1,300. 4. Purchase office supplies on account for $1,000 5. Pay employee salaries of $2,100 for the current month. Required: Record the transactions. Terrapin uses the following accounts: Cash, Supplies, Equipment, Accounts Payable, Service Revenue, Rent Expense, and Salaries Expense. E2-9 Below are recorded transactions of Yellow Jacket Corporation for August Debit Credit 1. Equipment 8,800 Cash 8,800 2. Accounts Receivable 3,200 Service Revenue 3. Salaries Expense 1.900 1.900 4. Cash Deferred Revenue. 5. Dividends Cash 900 3.200 Cash 1,500 1,500 900