Textbook Problem

OBJECTIVE 9 Exercise 2-47 Debit and Credit Effects of Transactions

Lincoln Corporation was involved in the following transactions during the current year:

1. Lincoln borrowed cash from the local bank on a note payable.
2. Lincoln purchased operating assets on credit.
3. Lincoln paid dividends in cash.
4. Lincoln purchased supplies inventory on credit.
5. Lincoln used a portion of the supplies purchased in Transaction d.
6. Lincoln provided services in exchange for cash from the customer.
7. A customer received services from Lincoln on credit.
8. The owners invested cash in the business in exchange for common stock.
9. The payable from Transaction d was paid in full.
10. The receivable from Transaction g was collected in full.
11. Lincoln paid wages in cash.

Required:

Prepare a table like the one shown below and indicate the effect on assets, liabilities, and stock-holders, equity. Be sure to enter debits and credits in the appropriate columns for each of the transactions. Transaction a is entered as an example: