R1: Record journal entries for the following transactions (you may need the account names in R2) 1) On 12/31/2015, you started your own textbook business by investing $5,000 of your own money. Account name 5000 Cr: 2) You also borrowed $10,000 from your best friend David. You promised to give him 8% annual interest at the end of the year and pay back the full amount in 5 years. Account name 10000 Cr: 3) on 2/1/2016 you purchased 100 textbooks ($40 each) with cash; another 20 textbooks ($40 each) on account. Account name merchandise inventor Cr: merchandise inventory 800 account payable 800 4) On 2/15/2016, you sold 50 textbooks for $65 each for cash; another 10 textbooks (also $65 each) on credit. Assuming that you use a perpetual system to account for inventory. 3250 sales Cr: Cr: Cr: 3250 accounts receivable 650 sales cost of goods sold 2400 Hint: you need to use the account COGS here. 2400 5) On 3/31/2016, you received utility bills for $450 but you didn't pay. utilites expense 450 Cr: accounts payable 450 6) On 3/31/2016, you withdraw $1,000 from the business for personal use. drawings account cash 1000