Complete journal entries and emphasize clearly how number 2 is done

company. 2. A suitable location is found and rent is $1,000 per month. The first and last month's rent are due upon signing of the lease on July 2, 20x2. The lease agreement is for one year. In addition to the monthly rent, an annual charge equal to 1% of sales is due at the end of the year (i.e. on June 30,20x3). Record the first month's rent as Rent Expense and the last month's rent as Prepaid Rent. 3. Furniture and fixtures are purchased at a cost of $15,000. These are purchased for cash. 4. A bank loan in the amount of $20,000 was obtained on August 1,20x2. Interest payments are due on the 1st of each month. The annual interest rate is 9%. The loan agreement calls for repayments of $4,000 every 4 months with the first payment due November 1,202. 5. Books and supplies of $50,000 were purchased on account. 6. An insurance policy was purchased for $1,200cash. The policy takes effect on July 2, 20x2 and expires on June 30, 20x3. 7. Sales for the period ended October 31,202 were: Cash sales - $190,000 Sales on account - $6,000 8. A total of $4,000 of the sales made on account were collected. 9. An additional $120,000 of inventory was purchased on account