For each of the following transactions for Buffalo, Inc., indicate the account that is debited and which is credited.

1. Buffalo borrows money from a bank.
2. Buffalo purchases a machine for cash.
3. Buffalo receives cash from an investor for new shares.
4. Buffalo pays cash for an insurance policy that takes effect in the future.
5. Buffalo repays a loan to a bank.
6. Buffalo obtains a machine by issuing shares to an investor .

	Buffalo borrows money from a bank. Debit:
	Buffalo borrows money from a bank. Credit:
	Buffalo purchases a machine for cash. Debit:
	Buffalo purchases a machine for cash. Credit:
	Buffalo receives cash from an investor for new shares. Debit:
	Buffalo receives cash from an investor for new shares. Credit:
	Buffalo pays cash for an insurance policy that takes effect in the future. Debit:
	Buffalo pays cash for an insurance policy that takes effect in the future. Credit:
	Buffalo repays a loan to a bank. Debit:
	Buffalo repays a loan to a bank. Credit:
	Buffalo obtains a machine by issuing shares to an investor. Debit:
	Buffalo obtains a machine by issuing shares to an investor. Credit:

A.

Machine

B.

Common stock

C.

Loans payable

D.

Prepaid insurance

E.

Cash