Exercise 2–2 1. 2. 3. 4. 5. 6. 7. 8. 9. 2–14 Cash.......................................................................... Common stock ..................................................... Equipment ................................................................ Note payable ........................................................ Cash ..................................................................... Inventory .................................................................. Accounts payable ................................................. Accounts receivable ................................................. Sales revenue ....................................................... Cost of goods sold.................................................... Inventory .............................................................. Rent expense ............................................................ Cash...................................................................... Prepaid insurance ..................................................... Cash...................................................................... Accounts payable ..................................................... Cash...................................................................... Cash.......................................................................... Accounts receivable ............................................. Depreciation expense ............................................... Accumulated depreciation ................................... 300,000 40,000 90,000 120,000 70,000 5,000 6,000 70,000 55,000 1,000 300,000 30,000 10,000 90,000 120,000 70,000 5,000 6,000 70,000 55,000 1,000