The following business scenarios are independent from one another.

1. Mary Poort purchased an automobile from Hayney Bros. Auto Sales for $9,000.

2. John Rodman loaned $15,000 to the business in which he is a stockholder.

3. First State Bank paid interest to Caleb Co. on a certificate of deposit that Caleb Co. has invested at First State Bank.

4. Parkside Restaurant paid the current utility bill of $128 to Gulf Utilities.

5. Gatemore, Inc., borrowed $50,000 from City National Bank and used the funds to purchase land from Morgan Realty.

6. Steven Wong purchased $10,000 of common stock of International Sales Corporation from the corporation.

7. Dan Dow loaned $4,000 cash to his daughter.

8. Mega Service Co. earned $5,000 in cash revenue.

9. McCloud Co. paid $1,500 for salaries to each of its four employees.

10. Shim Inc. paid a cash dividend of $3,000 to its sole shareholder, Marcus Shim.

Required

a. For each scenario, create a list of all of the entities that are mentioned in the description.

b. Describe what happens to the cash account of each entity that you identified in Requirement a.