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Purchased supplies on account. Paid interest on a bank loan. The business paid the stockholders a dividend. Returned some defective supplies and received a reduction in the amount owed. Made payment to repay bank loan. Received an invoice for supplies used. Received payment in advance from client for work to be done next month. Paid employee's salary. Peralta contributed additional capital to the business. Financial Effect of Transaction Debit an asset Credit an asset Debit a liability Credit a liability Debit common stock Credit common stock Debit dividends Credit dividends Debit a revenue Credit a revenue Debit an expense Credit an expense