On January 1 Picture Perfect was established. These transactions were completed during the month. 1. Stockholders invested Cash Common Stock $20,000 cash in the company in exchange for common stock. 20,000 Cash Common Stock 20,000 20,000 20,000 2. Paid $1,200 cash for April office rent. Rent Expense 1,200 Cash Cash 1,200 20,000 1,200 Rent Expense 1,200 3. Purchased office equipment for $2,500 cash. Equipment Cash 2,500 2,500 Cash 20,000 1,200 2,500 Equipment 2,500 4. Purchased $400 of advertising in the Chicago Tribune, on account. Advertising Expense 400 Accounts Payable Accounts Payable 00 400 400 Advertising Expense 400