Problem: Prepare journal entries for each of the following unrelated transactions. You may omit explanations for the journal entries.
1) A firm issues 5,000 shares of $2 par value common stock in exchange for $20,000 cash.
2) A firm acquires a building with an appraised value of $100,000 for $30,000 cash and the assumption of a 25-year, 10% mortgage with a balance of $60,000.
3) Acquires $1,000 (list price) of inventory for $980 cash. The firm treats cash discounts as a reduction in acquisition cost.
4) A firm pays $1,000 to its landlord. The $1,000 represents the current month's rent plus the next month's rent payment in advance.
5) A publisher sells $2,000 in magazine subscriptions that will be filled over the next 12 months.