MERCHANDISING ACOUNTING Joe Blink opened Blink Corporations Merchandising business on October 1. Blink applies the perpetual inventory system. Blink provides a 2-year warranty with one of its products which was first sold in October Prepare journal entries to record the following merchandising transactions. Oct. 1. Issued 580,000 shares of $5 par value common stock for $65 per share. 1. Paid three months' rent on a lease rental contract, $3,800. 1 Issued 22,500 shares of common stock to attorneys in payment of their bill of $70,000 for services rendered in helping the company organize. 1 Purchased office equipment on account from Office Station Co. $8,000. 1 Purchased merchandise form Boden Company for $8,200 under credit terms of 1/1 S. n/30, FOB shipping point, invoice dated October 1. 1 Sold merchandise that cost $900 to Rivera Co. for $2,800 under credit terms of 2/10, n/60 FOB shipping point. Invoice dated October 1. 2. Issued a 4 year, $70,000, zero interest bearing note to Reid Company and received cash of $71,776. 2 Paid $625 cash for freight charges on the purchase of October 1. Accept a 60 day. 10% note to replace its existing $1,800 account receivable to Rivera Co on October 1 Established a petty cash fund in the amount of $280. Paid the premiums on property and casualty insurance policies, $9,400. Purchased used truck for $8,000, paying $3,000 cash and the balance on account Sold merchandise to creek Co for $700 under credit terms of 2/10. n/60. Fob shipping point, invoice dated October 7. Issued 28,000 shares of $5 par value stock for land valued at $680,000. Purchased merchandise form Light Co. For $6,200 under credit items of 2/15, n/60, FOB destination, invoice dated October 9