QUESTION 1 10 marks

In August 2018, Alexandra Smitherson started her new contracting business: Stair at Me Inc. The business focused on building staircases. The following transactions occurred during August:

August 1 Alexandra invested $1,000 cash in exchange for 250 common shares.

August 2 The company borrowed $5,000 in the form of a long-term bank loan. The money was planned to purchase much of the equipment that would be needed.

August 5 Purchased equipment: $4,000. Paid $1,000 with the rest payable at the end of August.

August 10 Received and completed first staircase job a building on TRU Campus. Received $1,000 cash and the rest to be paid later.

August 12 Purchased supplies on account: $200.

August 14 Took a dividend of $500 to pay for personal expenses.

August 20 Paid for the August 5 equipment purchase.

August 24 Received payment for the first job.

August 29 Rented work space. Paid $6,000 in advance for the months of September, October, and November.

August 30 Received Augusts telephone bill: $200. Did not pay yet.

Required: a.) Record all necessary journal entries based on the transactions above