Aug. 1 1 3 WC issued 30,600 common shares to its two founding shareholders in exchange for $255,000 in cash and equipment valued at $51,000. The company borrowed $102,000 from the Commercial Bank at an interest rate of 6%. The borrowing agreement terms state that the loan is to be repaid at the end of each month in the amount of $2,550 per month plus interest. (Use Bank Loan Payable) In order to access a commercial kitchen, WC leased the site of a former restaurant, paying $6,120, of which $3,060 represented the rent for August and the balance was a damage deposit. 8 WC purchased flour and other ingredients costing $33,460 on account. 12 WC paid $6,940 to a local marketing company for its logo design and media planning services. 14 WC recorded its sales of the first two weeks of the month. Total sales (half in cash and half on account) amounted to $51,200, and the inventory related to these sales was determined to have a cost of $17,440. 19 Paid the suppliers $25,500 for goods previously purchased on account. 25 Collections from customers on account totalled $23,050. 26 WC purchased additional inventory (flour and so on) on account for $23,460. 29 WC received an invoice from its natural gas supplier for $2,750, which is payable on September 14. 31 WC recorded the sales for the balance of the month. Sales for this period totalled $62,020, of which $20,400 was on account. The cost of the ingredients from inventory related to these sales amounted to $20,700. 31 WC's six full-time employees were paid $3,980 each in wages for the month. 31 WC made the loan payment required under the terms of the borrowing agreement. 31 WC's board of directors declared a dividend of $1 per share to the holders of the company's common shares. Date Account Titles and Explanation Debit Credit Aug. 1 (To record the issuance of shares) (To record the borrowings) (To record sale of goods) (To record the cost) (To record sale of goods) (To record the cost) (To record wages paid to employees) (To record payment of loan) (To record dividend declared)