uestions 7&8 refer to the following information: Company, a merchandiser, had the following transactions in August: 1. Borrowed $21,000 from a bank. 2. Bought equipment costing $10,200, paying the manufacturer $5,600 in cash and promising to pay the remaining $4,600 next month. 3. Paid utility expenses of $5,938. 4. Purchased a $5,000, five-year insurance policy, paying for two years in advance. 5. Paid back a previous loan for $3,370