E4.9 (LO 2, 3) Small and Associates, a small manufacturing firm, entered into the following cash transactions during January 2020:

1. Issued 600 shares of stock for $25 each.

2. Sold services for $4,000 cash.

3. Incurred and paid payroll of $1,600.

4. Purchased land as a long-term investment for $9,000 cash.

5. Paid a $2,000 dividend.

6. Sold land with a book value of $3,000 for $3,500 cash.

7. Paid $1,500 to the bank: $900 to reduce the principal on an outstanding loan and $600 for interest incurred during January.

8. Incurred and paid miscellaneous expenses of $1,800.

a. Prepare journal entries for each transaction.

b. Prepare a cash T-account, and compute Smalls cash balance as of the end of January. Assume a beginning cash balance of $5,000.

E4.9 (LO 2,3) Small and Associates, a small manufacturing firm, entered into the following cash transactions during January 2020 : 1. Issued 600 shares of stock for $25 each. 2. Sold services for $4,000 cash. 3. Incurred and paid payroll of $1,600. 4. Purchased land as a long-term investment for $9,000 cash. 5. Paid a $2,000 dividend. 6. Sold land with a book value of $3,000 for $3,500 cash. 7. Paid $1,500 to the bank: $900 to reduce the principal on an outstanding loan and $600 for interest incurred during January. 8. Incurred and paid miscellaneous expenses of $1,800. a. Prepare journal entries for each transaction. b. Prepare a cash T-account, and compute Small's cash balance as of the end of January. Assume a beginning cash balance of $5,000