Prepare Journal entries necessary to record the activity below for the month of August and then prepare a balance sheet and income statement to reflect the activity for the month of August. There was no prior activity

1. Owners invested $100,000 cash into the company.

2. The firm borrowed $25,000 for working capital purposes; a short term note was signed.

3. A building was purchased for $175,000 with $25,000 cash and 150, 000 long term mortgage loan

4. Equipment (fixed assets) was purchased for $15,000

5. Bulk paper supplies-prepaid supplies -(copy paper, letterhead, envelopes, etc) were purchased for $2,500 with cash.

6. Inventory purchases of $18,500 were acquired on account .

7. Inventory that cost $7,500 was sold to customers for $16,000 cash.

8. Additional inventory of $9,000 was purchased; cash of $4,500 was paid and the balance is due in 30 days

9. It was determined that $900 of the supplies previously purchased was used in the normal course of business for the month of August

10. Inventory that cost $6,000 was sold to a customer for 14,500 on account

11. Cash of $6,000 was received from customers that had previously purchased items on credit.

12. Interest expense of $1,300 needs to be accrued on August 31st

13. Marketing expenses of $1,100 were incurred, though not paid in August

14. Printing expense of $900 for the month of August was due at the end of the month but has not been paid

15. Employee wages of $3,000 for the last week of August were not yet paid

16. Insurance for the month of August amounting to $700 was paid on August 30th.

17. Depreciation of $2,000 needs to be recorded at the end of the month. ( Consider this the total depreciation, no need to delineate between the building and equipment.)

18. Internet/phone expenses of $600 were incurred, though not paid in August.