Question & Answer: 1. For each of the following is a debit or credit needed to reflect the impact? a. Equipment increases b. Salary payable increases c. C…..

1. For each of the following is a debit or credit needed to reflect the impact? a. Equipment increases b. Salary payable increases c. Cash decreases d. Rent expense increases e. Sales revenue increases f. Accounts receivable decreases g. Capital stock increases h. Inventory decreases i. Accounts payable decreases j. Salary expense decreases

2. Record the following journal entries for Taylor Company for the month of March: a. Borrowed $4,500 from Local Bank and Trust b. Investors contributed $10,000 in cash for shares of the company’s stock. c. Bought inventory costing $2,000 on credit d. Sold inventory that originally cost $400 for $600 on credit e. Purchased a new piece of equipment for $500 cash f. Collected $600 in cash from sale of inventory in (d) g. Paid for inventory purchased in (c) h. Paid $1,200 in cash for an insurance policy that covers the next year i. Employees earned $3,000 during the month but have not yet been paid; this amount has been recorded by the company as it was earned. j. Paid employees $2,900 of the wages earned and recorded during February