T-account entries for various transactions. Set up T-accounts for the following accounts. Indicate whether each account is an asset, a liability, or a shareholders' equity item, and enter the transactions described below.

\section*{■ Cash}

- Merchandise Inventory

- Prepaid Insurance

- Buildings

- Equipment

- Accounts Payable

- Note Payable

- Advances from Customers

- Mortgage Payable

- Common Stock-Par Value

- Additional Paid-in Capital

(1) A firm issues 20,000 shares of \(\$ 5\)-par value stock for \(\$ 12\) cash per share.

(2) The firm acquires a building costing \(\$ 500,000\). It makes a cash payment of \(\$ 80,000\) and assumes a long-term mortgage for the balance of the purchase price.

(3) The firm acquires on account equipment costing \(\$ 20,000\) and merchandise inventory costing \(\$ 35,000\).

(4) The firm obtains a three-year fire insurance policy and pays the \(\$ 3,000\) premium in advance.

(5) The firm issues a 90 -day, 6 -percent note to the bank for a \(\$ 20,000\) loan.

(6) The firm pays \(\$ 22,000\) to the suppliers in (3).

(7) The firm receives an order for \(\$ 6,000\) of merchandise to be shipped next month. The customer pays \(\$ 600\) at the time of placing the order.