Master Mind Games. Inc. is a new corporation started on January 1. 2018. The following transactions occurred during the first year of operations.
a . On January 1 , the owners invested a total of $50,000 (the par value of the stock) t o start the company. In exchange, the corporation issued the owners 5.000 shares of common stock.
b . On March 14. the company paid cash 10 purchase office equipment for$ I 0.000.
c. On April 6. the company obtained a note from the bank for $100,000.
d . On May 31, salaries were accrued for 1i111e worked in May in the amount of $12,000. These salaries will be paid in June.
e. On June 15. the company paid cash to employees for salaries accrued on May 31.
f . On July 12. the company paid cash for legal fees associated with the startup of the company in the amount of $5,000.
g . On September 6, the compru1y sold $32,000 of merchandise to a large customer. The customer paid cash for half of the transaction and put the other half o n her credit accoum with the vendor (ignore the inventory and cost of goods sold entry of this transaction).
h. On November L. the customer that purchased goods on September 6 paid off its credit account balance of$ I 6,000 with cash.
i. On December 14, the company made a$ I 0,000 cash payment towards its outstanding bank note balance.

Required
a. Show the effect of each transaction on assets. liabilities. and equity using title accounting equation.
b . Prepare the journal entry for each transaction. Omit explanations.