1 Issued common stock in exchange for $109,000 cash. 2 Purchased inventory on account for $44,000 (the perpetual inventory system is used). 3 Paid an insurance company $3,480 for a one-year insurance policy. Prepaid insurance was debited for the entire amount. 4 Sold merchandise on account for $12,900. 5 The cost of the merchandise was $7,900. 6 Borrowed $39,000 from a local bank and signed a note. Principal and interest at 10% is to be repaid in six months.