Prepare journal entries to record the following transactions of Daisy King Ice Cream Company. If an entry is not required, state "No Entry".

Prepare a balance sheet, income statement, and statement of shareholder's equity

1. Started business by issuing 10,000 shares of capital stock for $20,000.

2. Signed a franchise agreement to pay royalties of 5% of sales.

3. Leased a builidng for three years at $500 per month and paid 6 months rent in advance.

4. Purchased equipment for $5,400, paying $1,000 down and signing a two-year, 10% note for the balance.

5. Purchased $1,800 of supplies on account.

6. Recorded cash sales of $800 for the first week.

7. Paid weekly salaries and wages, $320.

8. Paid for supplies purchased in item (5).

9. Paid royalties due on first week's sales.

10. Recorded deprecitaion on equipment, $50.