Central Air Inc has the following transactions in August 2012. Prepare journal entries for each of the transactions:

1. Issued 3,000 shares common stock to investors for cash at $10 per share.

2. Purchased $750,000 inventory on account.

3. Borrowed $60,000 from bank.

4. Sold $1,200,000 of products to customers on account; cost of the products sold was $480,000.

5. Purchased for cash $25,000 machinery.

6. Incurred $120,000 salaries, paid 75% in cash and owing the rest on account.

7. Earned $1,500 interest on investments, received 90 % in cash.

8. Paid $52,000 cash on accounts payable.

9. Declared and paid $5,000 dividends.

10. Incurred $1,800 utilities usage during the month; paid $1,500 in cash and owed the rest on account.