8. The following events occurred during the month of May for McLain Company. a. McLain sells 240 units for $20 each. McLain collects cash for 200 of these units. The units cost McLain $8 each to purchase. b. McLain purchases $1,800 worth of inventory on account. c. McLain collects $500 in cash on its A/R. d. McLain takes out a loan for $400. e. McLain pays out $350 cash in dividends. f. McLain receives a contribution of $600 from its owners. g. McLain purchased a new piece of equipment. The new equipment cost $1,000 and was paid for in cash. h. McLain pays $500 of its accounts payable. 1. McLain incurs $500 in salaries expense, but will no pay workers until next month. j. McLain incurs $300 in rent expense and pays it in cash. k. McLain prepays $200 in cash for insurance. 1. Taxes, paid in cash, are $110. Required: a. Prepare journal entries for the above transactions. b. Complete the T-accounts below. Numbers already under the accounts represent the prior balance in that account. Figure 4.30 Opening T-Account Balances Cash 500 Accounts Receivable 200 Inventory 150 Prepaid Insurance 0 Equipment 2.000 Accounts Payable 600 Salary Payable Note Payable 0 Capital Stock 1,500 Retained Earnings 750 Cost of Goods Sold Sales Revenue 0 Salary Expense 0 Rent Expense 0 Tax Expense 0 Dividends 0 c. Prepare a trial balance for May