Pacific Motors, Inc., entered into the following transactions during the month of August:

a. Purchased $1,500 of supplies on account from Major Supply Company. The cost of the supplies to Major Supply Company was $1,200.

b. Paid $600 to Valley Electric for the monthly utility bill.

c. Sold a truck to Fast Delivery, Inc. A $5,000 down payment was received with the balance of $12,000 due within 30 days. The cost of the delivery truck to Pacific Motors was $11,000.

d. Purchased a total of eight new cars and trucks from Japanese Motors, Inc., for a total of $96,000, one-half of which was paid in cash. The balance is due within 45 days. The total cost of the vehicles to Japanese Motors was $80,000.

e. Paid $1,875 to Silva’s Automotive for repair work on cars for the current month.

f. Sold one of the new cars purchased from Japanese Motors to the town mayor, Ana Mecham. The sales price was $17,500, and was paid by Mecham upon delivery of the car. The cost of the particular car sold to Mecham was $12,100. g. Borrowed $10,000 from a local bank to be repaid in one year with 12% interest. Required: 1. For each of the transactions, make the proper journal entry on the books of Pacific Motors. (Omit explanations.) 2. For each of the transactions, make the proper journal entry on the books of the other party to the transaction, for example,

(a) Major Supply Company,

(b) Valley Electric. (Omit explanations.) 3. Interpretive Question: Why do some of the journal entries for Pacific Motors and other companies involved appear to be “mirror images” of each other?