2. Prepare journal entries in good form for each transaction. Clearly indicate debits and credits. 1) Goods are sold for $500 cash in February. 2) Goods are sold for $500 in February, half is paid in cash and half is on account. 3) Goods are sold for $500 on account in February. 4) Cash is collected in March for all goods that had been sold on account in February. 5) An electric bill of $85 is paid in February for electricity used in February. 6) Electric usage for February is estimated to be $85. The bill will be paid in March. 7) In March the electric bill of $85 for February is paid. 8) 100 shares of common stock with a $1 par value are sold for $14 each. 9) A truck is purchased for $20,000 cash. 10) A truck is purchased by issuing a note payable of $20,000. 11) A truck is purchased for $20,000 by paying $5,000 in cash and issuing a short-term note payable for the remainder. 12) A building had been purchased 10 years ago. The current year's depreciation expense is $8,000 13) Goods that had cost the company $600 were sold for $1,000 cash. 14) A customer ordered 1,000 caps to be delivered next month. The customer paid a $200 down payment. 15) An insurance policy for 2 years of insurance coverage was purchased on April 1. The purchase of the policy was properly accounted for at the time of the purchase. The policy cost $2,400. You are preparing the financial statements as of December 31 . 16) $10,000 was borrowed from the bank on September 1 at 6%. You are preparing the financial statements as of December 31 . 17) Inventory was purchased for $13,000. 18) An overdue account payable was replaced with a short-term note payable. 19) A dividend of $16,000 was declared. 20) A custom van was delivered to a customer who had prepaid $50,000 for it