Problem 1 Below are external transactions for Shockers Incorporated. Prepare the journal entries and explain what happens to the accounting equation. 1. Issue common stock in exchange for $400,000 cash. 2. Purchased equipment for $23,000 by signing a note payable. 3. Provided $10,000 services to customers on account. 4. Paid $2,500 rent for the month. 5. Paid $800 insurance for the month. 6. Collected $8,000 from customers on account. // Problem 2 At the beginning of April, Owl Corporation started their business. During the month of April, Owl had the following external transactions. Prepare the journal entries in proper form and post to \"Daccounts. Prepare a trial balance. 1. Issued common stock for cash, $44,000 2. Provide services to customers on account $8,500 3. Provide services to customers in exchange for cash, $3,200 4. Purchase equipment and pay cash, $7,600 5. Paid rent for April $1,100 6. Paid employees\" salaries for April, $3,600 7. Paid dividends to stockholders, $2,000 ________________________._ Problem 3 Belgles a list of common accounts. Indicate whether the normal balance of each account is a debit or cre 't. Account Debit or Credit Account Debit or Credit 1. Cash 5. Equipment 2. Service Revenue 6. Retained Earnings 3. Salaries Expense 7. Utilities Expense 4. Accounts Payable 8. Accounts Receivable