Problem 1 (18 points):

Journalize the following business transactions in good general journal form.Identify each transaction by number (no dates). You may omit explanations of the transactions.

1.The owner, Mike Cline, invests $35,000 in cash to start a real estate office.

2.Purchased $400 of office supplies on account.

3.Purchased office equipment for $6,000, paying $2,000 in cash and signing a $4,000 note payable.

4.Real estate commissions earned billed (on account) to client of $4,000.

5.Paid $700 in cash for the current month's rent.

6.Paid $200 cash on account for office supplies purchased in transaction 2.

7.Received a bill for $600 for advertising for the current month.

8.Paid $2,200 cash for office salaries.