Reference no: EM132228125

Question - Following is a list of transactions that occurred in January for the Yazma Corporation.

a) Issued 500 shares of common stock to a new stockholder who paid $20,000 for those shares.

b) Borrowed $15,000 in start-up funds from a local bank, and signed a note promising to repay that amount in two years.

c) Purchased new equipment costing $8,000, paying cash.

d) Paid rent ($500 / month) on office space in advance covering the next six months.

e) Bought office furniture costing $4,000, on account.

f) Paid $750 for this month's electric bill.

g) Earned $3,500 by providing services to customers who agree to pay Yazma within 30 days.

h) Paid $900 in wages to their employees.

REQUIRED:

1. For each transaction, identify the account to be debited and the account to be credited, and the dollar amount for each.

2. For each debit and each credit, identify whether that represents an increase (+) or decrease (-) to that account balance.