High View Theater Company owns movie theaters in the shopping centers of a major metropolitan area. The business engaged in the following business transactions:

Feb. 1 Received cash of \(\$ 60,000\) and issued common stock to the investor.

2 Paid \(\$ 40,000\) cash to purchase land for a theater site.

5 Borrowed \(\$ 220,000\) from the bank to finance the construction of the new theater. Signed a note payable to the bank.

7 Received \(\$ 20,000\) cash from ticket sales and deposited that amount in the bank. (Label the revenue as Sales Revenue.)

10 Purchased theater supplies on account, \(\$ 1,700\).

15 Paid employee salaries, \(\$ 2,800\), and rent on a theater building, \(\$ 1,800\).

15 Paid property tax expense on theater building, \(\$ 1,200\).

16 Paid \(\$ 800\) on account.

17 Declared and paid a cash dividend of \(\$ 3,000\).

High View uses the following accounts: Cash; Supplies; Land; Accounts Payable; Notes Payable; Common Stock; Dividends; Sales Revenue; Salary Expense; Rent Expense; Property Tax Expense.

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1. Analyze each business transaction of High View Theater Company, as shown for the February 1 transaction:

Feb. 1 The asset Cash is increased. Increases in assets are recorded by debits; therefore, debit Cash. The stockholders' equity of the entity is increased. Increases in stockholders' equity are recorded by credits; therefore, credit Common Stock.

2. Journalize each transaction. Explanations are not required.