You just opened a small computer and game shop called New City Computers near EIU. Your shop sells computer accessories and makes computer repairs and the periodic inventory system has been implemented for your merchandising inventories and all taxes are ignored. The following transactions occurred in the period of May, 2021:

a. Received $15,000 cash from your parents and issued capital stock to them.

b. Signed and paid a 1-year rental contract in advance for the shop totaled $9,200 in cash.

c. Signed a 1-year loan with a bank to raise additional money totaled at $8,000.

d. Purchased all repair tools, equipment and furniture for $10,000 and paid all in cash. e. Bought repair supplies totaled at $2,000 on account from suppliers.

f. Bought merchandise inventories totaled at $4,000 in cash from suppliers.

g. Sold all merchandise inventories for $6,000 in cash.

h. Provided repair and upgrade services for customers totaled at $1,500 on account. i. Collected $500 in cash from customers from transaction (h) above.

j. Paid $600 in cash for employee wages expense.

k. Paid $100 in cash for utilities expense.

l. Paid suppliers $2,000 in cash for repair supplies purchased in (e).

Required:

1. For each transaction a-l, perform transactions analysis and indicate the account, amount, and effects (+ for increase, for decrease or NE for no effect) on the

accounting equation A = L + SE. (12 marks)

2. Prepare journal entries for each transaction into the general journal using the simplified format (no need to write explanations). (24 marks)