The account word choices are: accounts payable, accounts receiveable, cash, common stock, computers, dividends, notes payable, salaries expense, service revenue, or supplies.

Exercise 3-16 Transaction Analysis Tsunami, Inc., entered into the following transactions during one month of operations: Required: a. Indicate the specific accounts affected by each transaction. b. Indicate whether those accounts were increased or decreased c. Designate the normal balances for each of the specific accounts. Transaction Accounts Increased/ Decreased Normal Balance 1. Purchased 3,000 of computer equipment on account. Equipment Debit Accounts payable v Credit 2. Issued $7,500 of common stock to investors in exchange for cash Cash Debit Common stock Credit 3. Purchased supplies for $300 in cash Accounts payable v Debit Cash Credit 4. Billed customers $25,000 for services rendered Notes payable Debit Service revenue Credit 5. Paid salaries of $3,500 to employees Debit Accounts payable v Credit 6. Paid dividends to stockholders in the amount of $1,000 Debit Accounts payable v Debit 7. Received $5,000 cash in payment of services earned and billed in the previous month . Cash Tncreased--De Debit Notes payable Credit 8. Paid cash for the purchase in #1. Accounts payable v Debit Cash Credit 9. Borrowed $50,000 from the bank. Accounts payable v Debit Notes payable Credit