10. Expenses incurred but not yet paid or recorded are called a. prepaid expenses. accrued expenses. c. interim expenses. d. unearned expenses PROBLEM 1 (20 PTS.) Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions. 1. The owner, P. West, invests $40,000 in cash in starting a real estate office operating as a sole proprietorship. 2. Purchased supplies for $1,000 cash. 3. Purchased equipment for $15,000, paying $5,000 in cash and signed a 6-month, $10,000 note payable. 4. Real estate commissions billed to clients amount to $15,000. 5. Paid $1,500 in cash for the current month's rent. 6. Paid $300 cash on account for supplies purchased in transaction 2. 7. Received a bill for $600 for advertising for the current month. 8. Paid $2,500 cash for office salaries and wages. 9. West withdrew $1,800 from the business for living expenses. 10. Received a check for $5,000 from a client in payment on account for commissions billed in transaction 4