Phillips Company engaged in the following transactions during the month of August Prepare journal entries for each transaction a Phillips borrowed $560,000 from RBC. b. Phillips purchased $239,000 worth of inventory from Jackson Corporation on the account c. Phillips sold the entire inventory purchased in transaction b for $500,000 on the account. d. Phillips paid salaries to its employees of $109,000. No previous accrual had been made for salaries e Philips repaid a loan $ 100,000