Prepare journal entries to record the initial transaction

1. ABC collected $1,200 cash from a customer on May 1,2019, for services to be rendered evenly over the next year (through April 30, 2020).

2. ABC borrowed $10,000 from a bank on July 1, 2019 at an annual interest rate of 5%. The total interest due on the loan of $500 (= $10,000 x 5%) will be paid when the loan is repaid on June 30, 2020.

3. Wages to employees at ABC have been paid up to December 26, 2019. Employees worked on December 27 and December 28 and will be paid on January 5, 2020. Wages amount to $1,000 per day.

4. ABC is renting office space at a cost of $600 per month. On September 1, 2019, ABC paid $4,800 for eight months of rent in advance covering the period September 1, 2019, through April 30, 2020.

5. ABC purchased factory equipment on October 1, 2019 for $50,000. It estimated depreciation of $2,000 for 2019 on the equipment, but none has been recorded yet.

6. ABC purchased an insurance policy on July 1, 2019 for $3,600 cash. It provides coverage for 12 months from July 1, 2019, through June 30, 2020.

7. ABC purchased $2,500 in office supplies at the start of the year. On December 31, 2019, a physical count reveals that there is $700 of office supplies on hand.

8. ABC declared a dividend of $1,500 on December 31, 2019, that will be paid on January 21, 2020.