David Allen has decided to go into the insect extermination business and to operate as Dougs Extermination Service. The following transactions were completed during the first month of operations, May, 20- 2 I. David invested $35,000 cash in the business. 2. Purchased extermination equipment for $15,000 in cash. 3. Paid $800 rent for garage and office quarters 4. Paid Low Glow Chem Co. for chemicals expense $1,200 by borrowing money 5. Received $1,600 revenue for extermination service