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. Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Supplies Prepaid Insurance Interest Receivable Equipment Accumulated Depreciation Land Accounts Payable Note Payable Salaries Payable Deferred Service Revenue Interest Payable Income Tax Payable Common Stock Paid-in Capital in Excess of Par-Common Stock Retained Earnings Dividends Sales Revenue Service Revenue Interest Revenue Cost of Goods Sold Bad Debt Expense Depreciation Expense Interest Expense Legal Expense Operating Expense Repair Expense Salaries Expense Supplies Expense Income Tax Expense Income Summary Net income N/A-debit N/A-credit