The following transactions took place during the month of August :

Aug 1 The corporation opened a bank account at the First National Bank with a deposit totaling $10,000. The deposit consisted of a $5,000 investment by Mae Ling and an additional $5,000 by James Madison. In return, the corporation issued 500 shares of common stock to Ling and an equal number to Madison.

Aug 2 Paid $1000 for one month's rent for office space.

Aug 3 Purchased a pre-owned 2013 Ford Suburban van for $15,000 from Vans Unlimited: $4,000 in cash, remainder as a loan from the First National Bank in the form of a 12% (interest) note payable in 48 equal monthly installments.

Aug 6 Purchased on net 30-day terms and received delivery of art works from Shanghai Export Company: 20 Sculptures for $12,000.

Aug 17 Delivered to The Gift Gallery on C.O.D. terms five ivory sculptures for $5,000. Received payment in full upon delivery.

Aug 18 Delivered to Vanity Faire six Chinese paintings with an invoice for $7,800 with Net 10 terms.

Aug 28 Payroll for JOHN J. JONES: Wages 80 hours @ $10 Gross pay $800.00 FICA and Medicare: 60.00 Federal withholding tax: 100.00 State withholding tax: 30.00 State disability Insurance: 10.00

Aug 28 Payment to AT&T for $1100: New telephone system $1000 and service deposit $100

Aug 28 Payment of $1300 to Andersons Direct Mail for direct mail advertising.

Aug 29 Received payment of $2,000 on account from Vanity Faire.

Aug 30 The Board of Directors declared a dividend of $1.00 per share and checks were drawn the same day.

Aug 31 Partial payment of $6000 made to Shanghai Export Co.

*****Record the August transactions in proper journal entry format. Cash balance is $2,000.00. Net income is $3,100.00