Following are the transactions for Valdez Services.

1. The company paid $5,000 cash for payment on a 3-month-old account payable for office supplies.
2. The company paid $2,000 cash for the just-completed two-week salary of the receptionist.
3. The company paid $50,000 cash for equipment purchased.
4. The company paid $700 cash for this months utilities.
5. The company paid a $2,000 cash dividend to the owner (sole shareholder).
6. Prepare general journal entries for the above transactions of Valdez Services.
7. Listed below are three reasons why a transaction would not result in an expense. Match each of the reasons to the transaction it properly describes.