2. Use the following transactions to complete parts I \& II. i) For each of the following transaction, prepare journal entries in "Good Form" including proper dates and descriptions. (20 Marks) - On May 1, Nike purchased 5000 shirts on account for $250,000, with terms 2/15, net/30. - Nike was invoiced for the full amount and paid for its sweaters on May 12. - Nike sold 100 shirts on October 1 on account for $3,000 with terms 1/10, net/30. Nike's cost of the sweaters was $2,000. - On October 10, Nike received payment in full for the 100 shirts sold. - Equipment was purchased last year at a cost of $500,000. The equipment's useful life is 5 years at which point is will have no value. Records the current year's amortization. - Salaries Expense is $5,000 per day -Monday through Friday-and the business pays employees each Friday. This year December 31 falls on a Tuesday. Prepare the adjusting entry. - On April 1, we paid $24,000 for a one-year insurance policy. We debited Prepaid Insurance and Credited Cash, prepare the adjusting entry on Dec 31 . - On December 31 , we had an inventory balance of $300,000. A physical count of inventory only shows $295,000. Prepare the adjusting entry. ii) Post your journal entries to the appropriate T-Accounts. Use the answer sheet provided. (8 Marks)