On December 1, Gary Waverly began an auto repair shop, Waverly's Quality Automotive. The following transactions occurred during December (Click the icon to view the transactions.) The business uses the following accounts: (Click the icon to view the accounts.) Adjustment data: A(Click the icon to view the adjusting data.) Read the requirements. Requirement 1. Prepare the journal entries, and post to the T-accounts. Begin by preparing the journal entries for the December transactions. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Dec. 1: Waverly contributed $64,000 cash to the business in exchange for shares of common stock. Date Accounts and Explanation Debit Credit 0 More Info - X Dec. 1 64000 84000 Dec 1 1 Accounts Payable Accounts Receivable Accumulated Depreciation Equipment Advertising Expense Cash Common Stock Depreciation Expense-Equipment Dividends Equipment Insurance Expense Interest Expense Interest Payable Land Notes Payable Office Supplies Prepaid Insurance Rent Expense Salaries Expense Service Revenue Supplies Expense Unearned Revenue Utilities Expense Utilities Payable Waverly contributed $64,000 cash to the business in exchange for shares of common stock. Purchased $12,600 of equipment paying cash. Paid $1,400 for a four-month insurance policy starting on December 1. 9 Paid $15,000 cash to purchase land to be used in operations. 10 Purchased office supplies on account, $2,000. 19 Borrowed $30,000 from the bank for business use. Waverly signed a note payable to the bank in the name of the corporation. The note is due in five years. 22 Paid $1,600 for advertising expenses. 26 Paid $1,100 on account. 28 The business received a bill for utilities to be paid in January, $260. 31 Revenues eamed during the month included $15,500 cash and $2,900 on account. 31 Paid employees' salaries $3,900 and building rent $1,000. Record as a compound entry. 31 The business received S980 for auto screening services to be performed next month. 31 Paid cash dividends of $3,000 to stockholders. Print Done