2. Create General Ledger Entries based on the following Transactions for Nert Tech (a start up IT company): Required: Please choose from the Transactions and Account Descriptions below to book the entries If there is no entry for either a debit or credit please leave blank. Account Descriptions can be used multiple times 1 Initial Investment of $500,000 Cash (No Common Stock Issued) 2 Purchase Land & Building for $175,000 Cash. Fair Value of Land $25,000, PV Building was $200,000 3 Purchased Inventory from a vendor $8,000 ($3,000 on Credit, $5,000 Cash). 4 Obtained a Bank Loan for $250,000 5 Prepaid for Advertising $5,000 6 Sold Inventory costing $3,000 for $9.000 ($7,000 Cash, $2,000 on Account) 7 Accrued $2,000 in Wages earned but not paid 8 Paid $3,000 of Inventory purchased on Credit in #3 above 9 Paid $2,000 in Wages to employee 10 Reserved for Bad Debt Expense in the amount of $100. 11 Accrued one month of Property Tax (Annual Estimate of $6,000) 12 One month Depreciation of Building (40 Year Asset) A/P Accounts Receivable Accrued Wages Accumulated Depreciation Advertising Expense Account Description Choices: Bad Debt Expense Inventory Building Cand Cash Long Term Debt Cash Pre-Paid Expenses COGS Property Tax Accrual Depreciation Exp Property Tax Exp Reserve for Bad Debt Sales Revenue Wage Expense APIC CR Account Description 1 Cash FR DR S . Account Description DR CR 7 Arendances 2.DDD cash 12.0DD 52 8 P Cash BODO 3 oool 2 Land 2 o Buildina20d I och 9 Cash 2 DDD LWOccnd2 DO 3 Invatn Cash AIP 80.00 S000 2001 110D 10 Rs. Bad D E Pod Debt IDD 4 AIR ZSGD Long term Den h o 5 Advertising Exe SIDDO Le paid for no n 6 11 Pep Tornion 500 ly toyxye | 12 De Five Lcosh