1. Issued 10,000 shares of its own common stock for $100,000 cash. 2. Borrowed $50,000 cash in return for a 9%, one-year note payable. 3. Purchased equipment at a net cost of $50,000 cash. 4. Purchased inventory on account for $40,000. Assume that the company uses the perpetual inventory system. 5. Sold merchandise for $50,000 (that had cost $30,000 ); collected $35,000 cash, and the $15,000 balance is due in one month. Hint: Make entries for both sides of the transaction one for sales and one for cost of goods sold. 6. Paid $12,500 cash for operating expenses. 7. Paid for half of the merchandise previously purchased on account in transaction 4. 8. Collected 40% of the balance due on the sales in transaction 5 . 9. Paid $600 cash for an insurance premium for one year of coverage (debit prepaid insurance). 10. Paid $5,000 cash in legal fees for the month of March. 00,000 cash. tote payable. that the company uses the perpetual inventory system. ; collected $35,000 cash, and the $15,000 balance is due in one month. he for sales and one for cost of goods sold