10/1/YR 1 -- A company receives $20,000 in cash for 20,000 shares of its common stock at $1.00 per share. The journal entry for this transaction will include the following: a. A credit to Common Stock of $20,000. b. A credit to Cash of $20,000. c. A credit to Retained Earnings of $20,000. d. No journal entry is required.

10/3/YR1 -- The company buys a $7,000 truck from a dealer. They pay $3,000 in cash on the purchase date and borrows the rest from the dealer by signing a 2-year promissory note for $4,000. The journal entry for this transaction will include the following: a. A debit to Truck of $7,000. b. A debit to Note Payable -- Truck of $4,000. c. A credit to Truck of $4,000. d. No journal entry is required.

10/8/YR1 -- The company borrows $8,000 in cash from Local Bank they sign a 5-year promissory note with Bank A, a local bank. The journal entry for this transaction will include the following: a. A credit to Cash of $8,000. b. A credit to Note Payable Bank A of $8,000. c. A debit to Note Payable Bank A of $8,000. d. No journal entry is required.

10/25/YR1 -- The company acquires supplies to be used by its employees. The supplies cost $2,500. Although they have received the supplies, it will not pay for the supplies until November, which is the following month. The journal entry for this transaction will include the following: a. A debit to Account Payable -- Supplies of $2,500. b. A credit to Supplies of $2,500. c. A debit to Supplies of $2,500. d. No journal entry is required.

11/15/YR1 -- The company pays its vendor the $2,500 that it owes for the supplies it purchased in Transaction #20. The journal entry for this transaction will include the following: a. A debit to Account Payable -- Supplies of $2,500. b. A credit to Accounts Payable -- Supplies of $2,500. c. A debit to Cash of $2,500. d. No journal entry is required. 12/7/YR1 The company provides services to a customer in the amount of $15,000. They receive $5,000 in cash when the services are provided and will invoice the client for the remainder to be paid at a later date. The company expects its customer to pay the $10,000 remainder in early January of Year 2. The journal entry for this transaction will include the following: a. A credit to Accounts Receivable of $10,000. b. A credit to Service Revenue of $15,000. c. A credit to Service Revenue of $5,000. d. No journal entry is required.

12/7/YR1 To provide the services described in Transaction #22, the company uses $500 worth of the supplies that it purchased in Transaction #20. The journal entry for this transaction will include the following: a. A debit to Supplies Expense of $500. b. A debit to Supplies of $500. c. A credit to Supplies Expense of $500.