Below are several transactions entered into by Vulcan Metal Corporation during 2012. Unless otherwise noted, all transactions involve cash.

1. Purchased equipment for $150,000.

2. Paid employees $30,000 in wages.

3. Collected $15,000 from customers as payments on open accounts.

4. Provided services for $24,000: $16,000 received in cash and the remainder on open account.

5. Paid $50,000 on an outstanding note payable: $10,000 for interest and $40,000 to reduce the principal.

6. Purchased a one-month ad in the local newspaper for $5,000.

7. Purchased a building valued at $250,000 in exchange for $130,000 cash and a long-term note payable.

8. Sold investments with a cost of $20,000 for $35,000.

REQUIRED:

Prepare journal entries for each transaction and explain how each affects the accounting equation.