CP 2–6

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Required: Prepare journal entries for each of the following transactions:

1. Issued share capital for $3,000 cash
2. Purchased $2,000 of equipment on credit
3. Paid $400 cash for this month’s rent
4. Purchased on credit $4,000 of supplies to be used next month
5. Billed $2,500 to customers for repairs made to date
6. Paid cash for one-half of the amount owing in transaction 4
7. Collected $500 of the amount billed in transaction 5
8. Sold one-half of the equipment purchased in transaction 2 above for $1,000 in cash.