During the year 2021, the company had the below activities. Note that none of these activities should impact the income statement, only the balance sheet; we are assuming for simplicity that the company had no revenues or expenses during 2021. Accordingly, we are ignoring any interest associated with the Notes Payable.

On a new worksheet titled Question #2, prepare journal entries for each event that is an accounting transaction.

1. Collected $15,000 cash on open accounts receivable from customers.
2. Received a $100,000 loan from the bank, payable in four years.
3. Bought additional inventory for $6,000 on account.
4. Ordered $10,000 of inventory from a supplier to be delivered next month.
5. Received $3,000 of supplies that were ordered last month but will not pay the invoice until the end of the year.
6. Paid off $40,000 of notes payable.
7. Purchased additional equipment costing $20,000; paying $5,000 in cash and signing a promissory note (i.e., a note payable) to pay the balance in two years.
8. Issued additional shares of stock, receiving $50,000 in cash from investors.
9. Purchased $40,000 of land with cash.
10. Paid off $30,000 of salaries owed from the prior year.