M3-16 Preparing Accrual Basis Journal Entries for Business Activities [LO 3-3] An international children's charity collects donations, which are used to buy clothing and toys for children in need. The charity records donations of cash and other items as Donations Revenue when received. a. Received $8,950 in cash and checks from a door-to-door campaign. b. Incurred and paid $2,300 cash for employee wages this month. c. Paid $4,970 cash on a short-term loan from the bank (ignore interest). d. Bought $5,180 worth of new toy supplies from a large toy manufacturer, paying $1,680 cash and signing a short-term note for $3,500. e. The manufacturer generously donated an additional $4,050 of toy supplies. Required: 1. Prepare journal entries for the above transactions, which occurred during a recent month. 2. Determine the charity's preliminary net income.