1. Journalize the following events/transactions that Lobnitz entered into during the month.

1. Received $1,500,000 from issuing 500,000 shares of $1 par value Lobnitz common stock. (When recording this entry, creditTWOdistinct owners equity accounts.)
2. Borrowed $750,000.
3. Purchased $300,000 of office furniture (property, plant, and equipment) on a cash basis.
4. Performed $400,000 of services for customers on a credit basis.
5. Incurred and paid $250,000 of wages expense for the month.
6. Collected $100,000 of accounts receivable.
7. Collected $25,000 from customers for work to be performed during the following month.

2. Assume the month in which you made the previous journal entries in part a. was Lobnitzs first month in business. What was Lobnitzs cash balance at the end of its first month of business?