Issued stock for $6 cash (example).

b. Purchased equipment costing $6,320, paying $4,893 in cash and charging the rest on account.

c. Paid $513 in principal and $91 in interest expense on long-term debt.

d. Earned $88,988 in sales revenue; collected $87,949 in cash with the customers owing the rest on account.

e. Incurred $10,766 in shipping expenses, all on credit. F. Paid $28,241 cash on accounts owed to suppliers. G. Incurred $4,332 in marketing expenses; paid cash. H. Collected $620 in cash from customers paying on account. I. Borrowed $6,359 in cash as long-term debt. J. Used inventory costing $62,752 when sold to customers. K. Paid $177 in income tax recorded as an expense in the prior year.

Cash ... DR $6

To Common Stock ... $6

(Being Shares issued for cash)

Equipment ... DR $6320

To Cash ... $4893

To Accounts Payable ... $1427

(Being Equipment Purchased partly for cash and partly on credit)

Long Term Debt ... $513

Interest Expense ... $91

To Cash ... $604

(Being Loan Installment repaid)

Cash ... DR $87949

Accounts Receivable ... DR $1039

To Sales ... $ 88988

(Being sales made partly in cash and partly on credit)

Shipping Expense ... DR $10766

To Accounts Payable ... $10766

(Being Shipping Expenses Incurred)

Accounts Payable ... DR $28241

to Cash ... $28241

(Being Accounts Payables Paid off)

Marketing Expenses ... DR $4332

To Cash ... $4332

(Being Marketing Expenses incurred)

Cash ... DR $620

To Accounts Receivable ... $620

(Being Accounts Receivables Paid off)

Cash ... DR $6359

To Long term Debt ... $6359

(Being Long Term Debt Borrowed)

Cost of Goods Sold ... DR $62752

To Merchandise Inventory ... $62752

(Being Cost of Goods sold Recorded)

Income tax Payable ... DR $177

To Cash ... $177

(Being Tax Payable Paid off)