Case \#2 - Basic Accounting Journal Entries Provide journal entries for each of the following transactions. Noting the effect on Assets (A), Liabilities (L), Equity (E), and Net Income (NI) for each debited and credited account. 1. On 1/1, purchased a $15,000 piece of equipment paying $10,000 in cash and obtaining a $5,000 loan (assume it is a note issued at par). 2. On 1/31, Paid employees $7,500 in wages earned during the month. 3. On 1/1, owner invested $25,000 of cash from a personal savings account into the business she started. 4. On 3/1, purchased $5,000 of merchandise on a credit account with the supplier. 5. On 5/1, made $7,000 of cash sales on merchandise. The merchandise sold had cost the company $3,000 to manufacture. 6. On 2/1, paid $5,000 cash for monthly rent. Rent is paid in advance at the start of each month. 7. On 7/1, made $1,000 of credit sales on customer accounts. The merchandise sold had cost the company $300. 8. On 10/1, declared $1,000 of dividends to the shareholders of the company. The amount has not yet been paid to shareholders. 9. On 11/1, sold a piece of machinery for $12,000cash. The machine had originally cost the company $20,000 and had accumulated depreciation of $7,500 recorded at the date of sale. 10. On 9/1, received $5,000 cash in advance for a one-year contract. The contract obligates the company to deliver services to be provided by the business over the course of one year. Record the receipt of cash. 11. On 12/1, paid $2,000 for a two-year insurance contract. 12. On 3/12 dividends of $200,000 were declared but not paid until 4/1. Provide journal entries for 3/12 and 4/1. 13. One 4/5, a company sold an old piece of equipment for $300,000. It had accumulated depreciation of $75,000 up to the date of sale and was originally purchased for $350,000. 14. On 5/25, issued 100,000 shares of $1 par value stock for $5 a share. 15. You are the accountant for a large apartment community. On 7/1, tenant pays rent of $2,500 in advance which will cover the months of July and August. Record the receipt of cash. Case \#2 - Basic Accounting Journal Entries Provide journal entries for each of the following transactions. Noting the effect on Assets (A), Liabilities (L), Equity (E), and Net Income (NI) for each debited and credited account. 1. On 1/1, purchased a $15,000 piece of equipment paying $10,000 in cash and obtaining a $5,000 loan (assume it is a note issued at par). 2. On 1/31, Paid employees $7,500 in wages earned during the month. 3. On 1/1, owner invested $25,000 of cash from a personal savings account into the business she started. 4. On 3/1, purchased $5,000 of merchandise on a credit account with the supplier. 5. On 5/1, made $7,000 of cash sales on merchandise. The merchandise sold had cost the company $3,000 to manufacture. 6. On 2/1, paid $5,000 cash for monthly rent. Rent is paid in advance at the start of each month. 7. On 7/1, made $1,000 of credit sales on customer accounts. The merchandise sold had cost the company $300. 8. On 10/1, declared $1,000 of dividends to the shareholders of the company. The amount has not yet been paid to shareholders. 9. On 11/1, sold a piece of machinery for $12,000cash. The machine had originally cost the company $20,000 and had accumulated depreciation of $7,500 recorded at the date of sale. 10. On 9/1, received $5,000 cash in advance for a one-year contract. The contract obligates the company to deliver services to be provided by the business over the course of one year. Record the receipt of cash. 11. On 12/1, paid $2,000 for a two-year insurance contract. 12. On 3/12 dividends of $200,000 were declared but not paid until 4/1. Provide journal entries for 3/12 and 4/1. 13. One 4/5, a company sold an old piece of equipment for $300,000. It had accumulated depreciation of $75,000 up to the date of sale and was originally purchased for $350,000. 14. On 5/25, issued 100,000 shares of $1 par value stock for $5 a share. 15. You are the accountant for a large apartment community. On 7/1, tenant pays rent of $2,500 in advance which will cover the months of July and August. Record the receipt of cash