Below are several transactions entered into by Rodman Consulting Company during 2020. Unless otherwise noted, all transactions involve cash.
1. Purchased equipment for $150,000.
2. Paid employees $30,000 in payroll incurred during 2020.
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 during 2020 and $40,000 to reduce the principal.
6. Purchased a one-month ad in the local newspaper for $5,000. The ad ran in 2020.
7. Purchased a building valued at $250,000 in exchange for $130,000 cash, with the balance on a longterm note payable.
8. Sold stock investments with a cost of $20,000 for $35,000.

INSTRUCTIONS:

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