Below are external transactions for Shockers Incorporated. Prepare the journal entries and explain what happens to the accounting equation. Issue common stock in exchange for $400,000 cash. 2. Purchased equipment for $23,000 by signing a note payable. 1. 3. 4. 5. 6. Provided $10,000 services to customers on account. Paid $2,500 rent for the month. Paid $800 insurance for the month. Collected $8,000 from customers on account. At the beginning of April, Owl Corporation started their business. During the month of April, Owl had the following external transactions. Prepare the journal entries in proper form and post to T-accounts. Prepare a trial balance. Issued common stock for cash, $44,000 Provide services to customers on account $8,500 Provide services to customers in exchange for cash, $3,200 Purchase equipment and cash, $7,600 pay Paid rent for April $1,100 Paid employees' salaries for April, $3,600 Paid dividends to stockholders, $2,000 1. 2. 3. 4. 5. 6. 7. Below is a list of common accounts. Indicate whether the normal balance of each account is a debit or credit.) Account 1. Cash 2. Service Revenue 3. Salaries Expense 4. Accounts Payable Debit or Credit 5. 6. 7. 8. Account Equipment Retained Earnings Utilities Expense Accounts Receivable Debit or Credit