Brewster Company is a newly organized company that purchased an existing business. Listed below are events from its first month in business.

For each event, identify the accounts that should be used to record the economic event. You should enter the numbers that correspond to the accounts that should be used, with a comma and space separating each number (e.g., 9, 10).

Your answer will be evaluated based on whether you have included every account that is needed and whether you have included any account that is not needed. An account can be used in analyzing more than one event.

Accounts:

accounts payable
accounts receivable
cash
common stock
equipment
interest payable
land
notes payable
retained earnings – dividends
retained earnings – interest expense
retained earnings – operating expense
retained earnings – sales
salaries payable

Event A: Investors contributed cash of $230,000 and were issued shares of stock. Which accounts should be used?

Event B: Brewster purchased equipment for $50,000, paying cash. Which accounts should be used?

Event C: Brewster signed a note and borrowed $25,000. At the same time, the bank required an interest payment of $250 from Brewster for the current period. The balance of $24,750 was deposited in Brewster’s bank account. Which accounts should be used?

Event D: Brewster recorded sales of $52,000, of which $30,000 were for cash and the remainder were credit sales. Which accounts should be used?

Event E: Brewster paid operating expenses of $21,000 in cash. Which accounts should be used?

Event F: Brewster paid a small dividend of $3,000 to shareholders. Which accounts should be used?