32 CHAPTER 3 PROBLEMS Problem 3.1 Prepare journal entries for the following independent transactions: a) Issued common stock in exchange for $500,000 b) Paid monthly office rent for the past month at the end of the month of $15,000. c) Purchased a building for $2,500,000, paying $1,000,000 cash and signing a note payable for the balance. d) Purchased office supplies for $3,000 on account. e) Used office supplies that had previously cost $2,000. Declared a cash dividend of $15,000, payable next month g) Paid a previously declared cash dividend of $20,000. h) Billed clients $50,000 for services performed. 1) Paid and recorded salaries for a month of $22,000. 1) Collected $25,000 on account from clients. k) Paid $20,000 on account to suppliers