Application Problem 3-5B For each of the following transactions, prepare journal entries: (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) a. b. c. d. e. f. g. The company issued common shares for $164,000. The company borrowed $76,000 from a bank. (Use Bank Loan Payable) Inventory costing $42,500 was purchased on account. Rented a retail space and paid a damage deposit of $10,000. Received a bill for advertising costs of $4,000 related to the grand opening. Paid employees wages of $16,300. Inventory costing $39,000 was sold for $72,400, half for cash and half on account. (Hint: Two journal entries are required.) A payment of $40,200 was made on accounts payable. Accounts receivable totalling $19,400 were collected. New equipment costing $119,000 was purchased for cash. The company paid $17,300 on its bank loan, which included $10,000 of interest. The company paid $8,100 for the monthly rent on its retail location. The company's board declared and paid dividends of $11,700. Paid the advertising bill related to the grand opening (see transaction (e)). h. i. j. k. 1. m. n. No. Account Titles and Explanation Debit Credit a. b. c. d. e. f. Burnley, Understanding Financial Accounting, Second Canadian Editio Application Problem 3-5B f. g. (To record sales revenue) (To record the cost) h. i. Accounts Payable Accounts Receivable Accumulated Depreciation-Buildings Accumulated Depreciation Equipment Accumulated Depreciation-Trucks Accumulated Depreciation-Vehicles Advertising Expense Buildings Cash Common Shares Cost of Goods Sold Depreciation Expense Dividends Payable Equipment Income Tax Payable Interest Expense Interest Payable Inventory Land Miscellaneous Expense Notes Payable Operating Expense Other Expenses Prepaid Insurance Prepaid Rent Rent Expense Rent Revenue Retained Earnings Selling and Administrative Expenses Supplies Expense Wages Payable Wages Expense Advances to Employees Bank Loan Payable Deposits Dividend Revenue Dividends Declared Income Tax Expense Income Summary Insurance Expense Interest Revenue Interest Receivable Licence Expense Long-Term Investments Mortgage Payable No Entry Notes Receivable Supplies Prepaid Licence Prepaid Property Tax Property Tax Expense Repair and Maintenance Expense Sales Revenue Service Revenue tments Telephone Expense Unearned Revenue Utilities Expense Vehicles j. k. 1. m. n. SHOW LETOE ACCOUNTS