Review each of the following transactions and determine if the transaction will increase (I) decrease (D) or have no effect (NA) on TOTAL ASSETS of the company. (1Mark each =10 Marks)

_______1. Borrow money from the bank _______2. Pay cash for inventory to sell to the customers _______3. Issue common stock to investors _______4. Purchase a truck for company use, agree to a notes payable _______5. Pay employees who worked this week _______6. Receive the utility bill it will be paid later _______7. Sell goods to a customer on account _______8. Pay for insurance for the next 6 months _______9. Use cash to make an investment to be held long term ______10. Purchase the companys own stock from investors

Use the following terms to indicate the correct account for each transaction. (1 Mark each= 12 Marks)

S Sales CGS Cost of Goods Sold OE Operating Expense ORE Other Revenue and Expense N Not reported on the income statement

_____a. rent expense _____b. depreciation expense on administrative furniture _____c. insurance expense _____d. selling investments at a loss _____e. collections from customers _____f. restructuring expense _____g. loss from a fire _____h. the cost of inventory provided to customers _____ i. executive salaries _____ j. advertising expense _____k. owe for employee bonuses _____l. supplies on hand