EX1. Prepare Journal entry: 1. Paid 3,000 cash on accounts payable. 2. Collected 1,000 of accounts receivable. 3. Purchased additional office equipment for 2,000, paying 500 in cash and the balance on account. 4. Earned revenue of 10,000, of which 3,500 is received in cash and the others on account. 5. Paid salaries 1,500, rent for July 900, and advertising expense 400. 6. Incurred utilities expense for month on account 150. 7. Received 5,000 from Capital Bank (money borrowed as a note payable)