Recording Transactions Using Journal Entries and T-Accounts 1. Receive $64,000 cash in exchange for common stock. 2. Purchase $6,400 of inventory on credit. 3. Sell inventory for $9,600 on credit. 4. Record $6,400 for cost of inventory sold in 3. 5. Collect $9,600 cash from transaction 3. 6. Acquire $16,000 of equipment by signing a note. 7. Pay wages of $3,200 in cash. 8. Pay $16,000 on a note payable that came due. 9. Pay $6,400 cash dividend. a. Prepare journal entries for each of the transactions 1 through 9. b. Set up T-accounts for each of the accounts used in part a and post the journal entries to those T-accounts. (The T-accounts will not have opening balances.) General Journal Description Debit Ref. Credit (1) 0 0 0 0 (2) 2 - 0 0 0 0 (3) - 0 0 0 0 0 (4) - 0 0 0 0 (5) 0 0 - 0 0 (6) 0 0 - 0 0 (7) 0 0 - 0 0 (8) 0 0 0 - 0 0 (9) 0 0 0 0 Cash (A) Inventory (A) 0 Accounts Receivable (A) 0 0 Equipment (A) 0 0 1. 0 0 1. 2. 1. 2. 0 0 0 0 0 0 0 0 0 0 1. 2. 0 0 0 0 0 0 3. 0 0 0 2. 3. 4. 0 3. 0 0 0 0 0 4 0 0 0 4. 3. 4. 5. 6. 7. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5. 0 0 0 5. 0 5. 6. 0 6. 0 0 0 6. 0 7. 7 0 0 0 0 0 7. 8. 0 0 0 7. 8. 0 0 0 0 0 0 0 0 8. 0 0 8. 9. 0 0 0 0 0 0 0 0 0 9. 0 9. 0 0 9. 9 Note Payable (L) 0 1. 1. 1 1. Sales (R) 0 0 0 0 0 1. Cost of Goods Sold (E) 0 0 0 0 Wage Expense (E) 0 0 0 2. 2 0 0 0 0 0 2. 3. 2. 2. 3. 0 0 0 0 0 3. 0 3. 4. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4. . 5. 4. 4 5. 0 0 0 0 4. 4. 5. 5. 0 0 0 0 0 0 0 0 0 0 0 6. 0 6. 6. 6. 7. 6. . 7. 0 0 0 0 0 0 0 0 0 0 0 0 7. 0 0 0 0 0 0 8. 8. 0 7. 8. 9. 0 0 0 8. 0 0 0 0 0 9. 9. 0 0 0 0 0 9. 1. 1. 2. 3. Retained Earnings (SE) 0 0 0 0 2. Accounts Payable (L) 0 0 0 0 0 0 0 0 0 0 0 0 0 3. 0 0 0 0 4. 5. 4 4. 5. 0 0 6. 7. 6 6. 7. 0 0 0 0 0 0 0 0 0 8. 0 8. 9. 0 0 0 9. 0 0