Question 2 ( 9 points) Give the journal entry for each (unrelated) transaction for Sanders Company under the cash method of accounting. If there is no entry then write 'no entry'. a) $185,000 of Sanders' accounts receivable were collected. Cash185000 b) Sanders prepaid $8,000 of insurance costs. Insurane 8000 Bed lash 8000 c) $7,000 of Sanders' prepaid insurance costs were used. no entref 7000 d) Sanders paid off $107,000 of its accounts payable. (relates to general expenses) Let Acet paydat 107000 cach 107000 On December 31 , its year-end, Sanders purchased equipment for $10,000 cash down and by signing a $40,000 note payable. Question 3 (10 points) On August 1, 2023, Exit Inc. decided to dispose of its Games Division. This division qualifies as a separate segment for accounting purposes. Exit expected the eventual disposition to result in a gain of $5,000. Exit has a December 31 year-end and a tax rate of 20%. a) During 2023, the Games Division earned pre-tax profit of $10,000. Calculate the total amount Exit should recognize in its 2023 Income Statement for discontinued operations. Is this amount a gain or a loss? b) Using the information in part (a) During 2024, the Games Division incurred a pre-tax loss of $15,000. Exit also sold the Games Division for a loss of $8,000. Calculate the total amount Exit should recognize in its 2024 Income Statement for discontinued operations. Is this amount a gain or a loss? Exit Inc. earned pre-tax profit of $35,000 on all of its other divisions in 2024 (i.e. not including the Games Division). Prepare the bottom portion of Exit's 2024 Income Statement, beginning with Income from Continuing Operations. (Earnings per share data not required.)