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8. The following events occurred during the month of May for McLain Company. 1. McLain sells 240 units for $20 each. McLain collects cash for

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8. The following events occurred during the month of May for McLain Company. 1. McLain sells 240 units for $20 each. McLain collects cash for 200 of these units. The units cost McLain $8 each to purchase. 2. McLain purchases $1,800 worth of inventory on account. 3. McLain collects $500 in cash on its A/R. 4. McLain takes out a loan for $400. 5. McLain pays out $350 cash in dividends. 6. McLain receives a contribution of $600 from its owners. 7. McLain purchased a new piece of equipment. The new equipment cost $1,000 and was paid for in cash. 8. McLain pays $500 of its accounts payable. 9. McLain incurs $500 in salaries expense, but will not pay workers until next month. 10. McLain incurs $300 in rent expense and pays it in cash. 11. McLain prepays $200 in cash for insurance. 12. Taxes, paid in cash, are $110. Required: 1. Prepare journal entries for the above transactions. 2. 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 tory Prepaid Insurance Equipment 2.000 4. McLain takes out a loan for $400. 5. McLain pays out $350 cash in dividends 6. McLain receives a contribution of 5600 from its owners. 7. Melain purchased a new piece of equipment. The new equipment cost $1,000 and was paid for in cash. & McLain pays $500 of its accounts payable 9. McLain incurs $500 in salaries expense, but will not pay workers until next month. 10. McLain incurs $300 in rent expense and pays it in cash 11. McLain prepays $200 in cash for insurance. 12. Taxes, paid in cash, are $110. Required: 1. Prepare journal entries for the above transactions 2. Complete the T-accounts below. Numbers already under the accounts represent the prior balance in that account. Figure 4.30 Opening T-Account Balances Cath 500 Account create 200 Prepaid 20 Accounts Payable son Salary Pale MastePayable Capital Stock 1.500 Retailing en Costed fordel 12 Salata Espere Tepee Donde 3. Prepare a trial balance for May. Previous: 4 The Connection of the Journal and the Ledger

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