Milo Clothing experienced the following events during 2016, its first year of operation:

1.	Acquired $12,000 cash from the issue of common stock.
2.	Purchased inventory for $6,000 cash.
3.	Sold inventory costing $3,600 for $6,120 cash.
4.	Paid $750 for advertising expense.

Required

a.	Record the general journal entries for the preceding transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1) Record entry for issuance of common stock.

2) Record the entry of inventory purchased for cash.

3)Record sale of inventory for cash.

4)Record entry for cost of goods sold.

5)Record entry for advertising Expenses paid.

b.	Post each of the entries to T-accounts.

cash

merchanishe inventory

common stock

sales revenue

cost of goods sold

advetising expense

c.	Prepare a trial balance to prove the equality of debits and credits.