general journal entries to record the following selected transactions for Serena Cloth Initial offering, 500,000 shares of $5 par value common stock are sold for $4,000,000. Paid $3, 600 rent in advance for two months (May and June). Purchased store equipment for $18,000, paying $6,000 cash, with the balance due on account in 60 days. Purchased Supplies for $300 Purchased merchandise on account for $20,000 2/10, n/30. Serena Cloth Store uses the perpetual method for inventory. Paid $200 for freight on the May 5 purchase. Paid for merchandise purchased on May 5 Sold merchandise on account for $15,000 (cost, $10,000), 1/10, n/30. Received a $6,000, 60 day eight percent note on account. Received invoice of $500 for advertisement running in June. Received a check for the amount due from sale on May 19. Declared a cash dividend of $0.25 per share of common stock to be paid in June. Paid monthly salaries of $2, 400 Record adjusting entry for one month's rent paid on May 2