TRANSACTION ANALYSIS: Below are selected business transaction that occurred during 2018 for Reading Railroad Construction Company. Reading Railroad sells replaceme parts and railroad cars in the transportation industry. Please record the following journal entries. Note: Journal entries that share the same number (1A,1B,1C, etc.) are related to each other. Q27. Transaction 2: Reading Railroad purchased a piece of equipment for $100,000, paying $30,000 in cash and signing a note due in nine months, for the remaining balance. The transactior record the purchase of the equipment should be: A. Debit: Equipment $100,000; Credit: Inventory $30,000; Credit: ST Note Payable $70,000. B. Debit Note Payable $100,000; Credit: Cash $30,000; Credit: Equipment $70,000. C. Debit Equipment $100,000; Credit: Cash $30,000; Credit: ST Note Payable $70,000. D. Debit: Retained Earnings $100,000; Credit: Cash $30,000; Credit: LT Note Payable $70,000. QUESTION 28 TRANSACTION ANALYSIS: Below are selected business transaction that occurred during 2018 for Reading Railroad Construction Company. Reading Railroad sells replaceme parts and railroad cars in the transportation industry. Please record the following journal entries. Note: Journal entries that share the same number ( 1A,1B,1C, etc.) are related to each other. Q28. Transaction 3- September 1,2018: Reading Railroad purchased 18-month insurance policy (effective 9/1/2018 through 2/28/2020) for $7,200 cash. The transaction to record the purchas the insurance policy should be: A. Debit: Insurance Expense; Credit: Cash. B. Debit: Prepaid Insurance; Credit: Cash. C. Debit: Prepaid Insurance; Credit: Insurance Expense. D. Debit: Cash; Credit: Prepaid Insurance