Prepare journal entries to record each of the transactions listed in E 2–1. 

Data From Problem E 2-1

1. Issued 30,000 shares of common stock in exchange for $300,000 in cash. 

2. Purchased equipment at a cost of $40,000. $10,000 cash was paid and a note payable to the seller was signed for the balance owed. 

3. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system. 

4. Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000. 

5. Paid $5,000 in rent on the warehouse building for the month of March. 

6. Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021. 

7. Paid $70,000 on account for the merchandise purchased in 3. 

8. Collected $55,000 from customers on account. 

9. Recorded depreciation expense of $1,000 for the month on the equipment.