E8B. Managers and accountants often encounter transactions with which they are unfa- miliar. Use your analytical skills to analyze and prepare journal entries for the following transactions, which have not yet been discussed in the text.

May 1 Purchased merchandise inventory on account, $1,400.

2 Purchased marketable securities for cash, $3,000.

3 Returned part of merchandise inventory purchased for full credit, $250.

4 Sold merchandise inventory on account, $800 (record sale only).

5 Purchased land and a building for $300,000. Payment is $60,000 cash, and

there is a 30-year mortgage for the remainder. The purchase price is allocated

as follows: $100,000 to the land and $200,000 to the building.

6 Received an order for $12,000 in services to be provided. With the order was

a deposit of $3,500.