Problem 5 Journal Entries (16 points) Use this information to answer the following questions: 1100 1120 1130 1140 1145 1150 1160 1200 1250 1260 1320 1325 2110 2120 2130 2140 2150 2160 Cash Short-term investments Notes receivable Accounts receivable Loan receivable Interest receivable Other accrued receivables Inventory Supplies Prepaid rent Buildings and equipment (B&E) Accumulated depreciation-B&E Notes payable (short-term) Interest payable Accounts payable Deferred service revenue Salaries payable Dividends payable 2170 Property taxes payable 2180 Rent payable 2200 Notes payable (long-term) 3100 Common stock 3200 Retained earings 5000 Sales revenue 5300 Interest revenue 6000 Cost of goods sold 6200 Advertising expense 6210 Miscellaneous expense 6220 Depreciation expense 6230 Insurance expense 6240 Property tax expense 6250 Rent expense 6260 Supplies expense 6270 Salaries expense 6400 Interest expense 6999 Dividends Required: Using the chart of accounts provided, indicate by account number the account or accounts that would be debited and credited in the following transactions. Also enter the letter A, B, or C to indicate the type of transaction as: (A) an external transaction, (B) an internal transaction recorded as an adjusting journal entry, or (C) a closing entry. The company uses a perpetual inventory system. All prepayments are initially recorded in permanent accounts. Example: 1. Sold $110,000,000 in common stock for cash. Answer to example: Transaction Transaction Account(s) debited 1100 Account(s) credited 3100 Type Transaction 1. Purchased building and equipment for $10,000,000, paying 20% cash and issuing a 30-year note for the balance. 2. Invested idle cash in short term investments. 3. Accrued the interest rcognized but not collected on notes receivable, 4. Collected cash on account from customers. 5. Closed dividends account, assuming there was a net income for the period