Problem #2. Practice the Basics Lewiston Company uses a perpetual inventory system and engaged in the following transactions during the month of August: Date Transaction Aug 1 Paid monthly rent of $2,000 5 Purchased sales equipment costing $8,000; made a down payment of $2,000 and agreed to pay the balance in 60 days. 9 Purchased $3,000 of inventory on credit. 13 Paid sales salaries of $1,200 and office salaries of $500. 14 Paid for the May 9 purchases. 18 Made credit sales of $3,300; the cost of the inventory sold was $1,900. 21 Purchased $600 of inventory for cash. 27 Sold land that had originally cost $1,900 for $2,600. Required: Prepare journal entries for each of the transactions. The first one is done for you. Aug 1 Rent Expense Cash $2,000 $2,000