part two, focus on number 8 only

Clemons is a consulting company. It prepares monthly financial statements. The following transactions are selected from the transactions that occurred from May 1-October 10. Assume the entry is recorded on the date stated. May 1. Issued additional shares of stock for $40,000 cash. May 1. Paid April's wages of $42,000. Note the date of this payment. May 15. Purchased 10 automobiles, paid $6,000 down and will pay $194,000 over the next 5 years. May 20. Hired a new salesperson and signed a contract to pay her $75,000 per year plus a commission based on sales. She starts work in June. May 27. Paid $125 for repair work done on the copy machine. May 28. Received $50,000 for consulting services performed in May. May 29. Paid June's rent of $7,000. May 30. Received the utility bill for May for $1,200. Clemons will pay the bill in June. May 30. Record $2,000 of depreciation for May. 10. June 1. Borrowed $150,000 from the bank on a 3-year Note Payable with 8% interest. 11. June 6. Received $235,000 for services performed and billed in May. a OID