For each of the following transactions, construct journal entries:
a. Inventory costing $3,100 is purchased on account.
b. A payment of $3,000 was made on accounts payable.
c. Inventory costing $1,800 is sold on account for $2,700. (Hint: Two journal entries are required.)
d. Accounts receivable of $2,000 are collected.
e. Office supplies costing $1,400 were purchased on account.
f. Office supplies costing $500 were consumed during the period.
g. New equipment costing $7,500 is purchased for cash.
h. The company borrows $12,000 from a bank.
i. The company issues common shares for $20,000.
j. Wages totalling $6,300 were earned by employees and paid to them.
k. The company paid $2,000 on its bank loan, which included $150 of interest.
I. The company paid $2,500 for the monthly rent on its leased premises.
m. Land costing $23,000 was purchased. The company paid $3,000 in cash and the remainder was financed with a mortgage (a long-term loan).