Question $2$

For transactions $1-6$ complete the following schedule for Red Eye Company. $[$HINT: You should only enter an amount in ONE column for transactions $1-6].$ Make sure to tally ending balances!!

Transaction

Beginning balances

Borrowed $$20,000$ cash by signing a note payable with a bank.

Collected accounts receivable for cash, $$7,000.$

Paid accounts payable, $$8,000$ cash.

Purchased office supplies on credit, $$2,000.$

Sold common stock, at par value, to new investors in exchange for $$20,000$ cash.

Paid income taxes payable of $$12,000.$

Ending balances