Journalizing transactions (Learning Objective 3) 15–20 min.

Action Advertising, Inc., engaged in the following business transactions during May 2014:

Action Advertising, Inc., uses the following accounts: Cash, Accounts Receivable, Supplies, Building, Accounts Payable, Notes Payable, Common Stock, Dividends, Service Revenue, Salaries Expense, and Property Tax Expense.
Requirement 1. Journalize each transaction. Omit explanations.AppendixLO1

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May 1 Borrowed $150,000 from Northern Bank. The company president signed 6 a note payable to the bank in the name of Action Advertising, Inc. Paid $135,000 cash to purchase an office building. Provided services to customers on account, $11,800. 9 Purchased $1,100 of office supplies on account. 13 17 18 22 26 31 Provided services to cash customers, $8,100. Paid $5,000 of dividends to company stockholders. Received payment on account from credit customers, $7,500. Paid property tax expense on office building, $1,250. Paid employee salaries, $3,350. Paid cash to purchase supplies, $1,300. Paid $5,000 on account.