ACC - Salisbury Company Problem

Prepare the necessary journal entries for each of the transactions presented below for the Salisbury Company.

a. Salisbury Company sold 2,000 shares of common stock at $25 per share in cash.
b. The company purchased equipment for $8,000, paying $2,000 in cash and the remainder in a note.
c. The company paid the current month’s rent, which amounted to $700, and the current month’s utilities, which amounted to $300.
d. Merchandise inventory costing $2,500 was sold on account for $4,800.
e. Depreciation on the equipment amount to $900.