1. Prepare journal entries to record the following external transactions:

   Sell shares of common stock for $30,000 cash to obtain funds to start the business

   Borrow $20,000 from a bank and sign a note promising to repay the full amount in three years

   Purchase equipment for $10,000, making a down payment of 3,000 and placing the rest on account.

   Pay $9,000 cash in advance for one year of rent

   Perform $12,500 of services on account

   Perform $9,300 of services for cash

   Receive $3,000 cash in advance for services to be provided in the future

   Collect $10,000 cash in settlement of an account receivable

   Purchase $2,700 of supplies on account

   Purchase $900 of supplies and pay cash

   Pay $450 cash for advertising costs

   Incur $200 of utilities on account

   Pay off $1,900 of accounts payable

   Pay salaries of $1,500 to employees

   Pay $2,000 cash dividends to stockholders