Prepare general journal entries to record each transaction.

• Sold merchandise for cash, $2,900.
• The cost of the merchandise was $1,400. The company uses the perpetual inventory system.
• Purchased equipment on account for $4,900 from the Strong Company.
• Received a $200 invoice from the local newspaper requesting payment for an advertisement that Whitlow placed in the paper on January 2.
• Sold merchandise on account for $4,400.
• The cost of the merchandise was $2,200.
• Purchased merchandise on account for $9,200.
• Purchased equipment for cash, $900.
• Paid the entire amount due to the Strong Company.
• Received $4,000 from customers on account.
• Paid $900 to the owner of the building for Januarys rent.
• Paid employees $2,400 for salaries for the month of January.
• Paid a cash dividend of $900 to shareholders.

Account Title Cash Debits Credits 4,400 1,400 4,400 Accounts receivable Inventory Equipment Accumulated depreciation Accounts payable Accrued liabilities 10,400 2,900 2,400 0 Common stock 9,000 Retained earnings 6,300 0 Sales revenue Cost of goods sold Salaries expense 0 0 Rent expense 0 Advertising expense 0 20,600 20,600 Totals The following transactions occurred during January 2021: 1 Sold merchandise for cash, $2,900. The cost of the merchandise was $1,400. The company uses the perpetual inventory system. 2 Purchased equipment on account for $4,900 from the Strong Company 4 Received a $200 invoice from the local newspaper requesting payment for an advertisement that Whitlow placed in the paper on January 2. 8 Sold merchandise on account for $4,400. The cost of the merchandise was $2,200 10 Purchased merchandise on account for $9,200. 13 Purchased equipment for cash, $900 16 Paid the entire amount due to the Strong Company 18 Received $4,000 from customers on account 20 Paid $900 to the owner of the building for January's rent. 30 Paid employees $2,400 for salaries for the month of January. 31 Paid a cash dividend of $900 to shareholders