A new corporation, ABC Corporation, was created on January 1 of the current year

Question

A new corporation, ABC Corporation, was created on January 1 of the current year The following transcations occurred during the month of January of the current year: Date Amount 1-Jan The owners put money into the corporation checking account in exchange for shares of common stock 131,891 1-Jan The corporation rented a building and paid the first six months rent 39,511 1-Jan The corporation bought equipment and furniture on account 49,007 1-Jan The corporation hired employees who will be paid the following for each month worked on the 10th of the following month 29,606 5-Jan The corporation bought supplies and paid cash 3,338 7-Jan The corporation bought inventory and paid cash 29,851 10-Jan The corporation pays for advertising in the local newspaper and paid cash 896 10-Jan The corporaiton pays for one year of insurance and paid cash 2,691 11-Jan The corporation makes cash sales 39,670 14-Jan The corporation makes sales on account 80,658 31-Jan The corporaiton counts the inventory remaining at the end of the month 18,597 31-Jan The corporation counts the supplies remaining at the end of the month 1,409 31-Jan The corporation paid some of what it owed on account 24,503 31-Jan The corporation collects money owed to them on account 42,426 31-Jan The corporation decides to depreciate the furniture and equipment over 60 months Make the journal entries required for the month of January in the space below A new corporation, ABC Corporation, was created on January 1 of the current year The following transcations occurred during the month of January of the current year: Date Amount 1-Jan The owners put money into the corporation checking account in exchange for shares of common stock 131,891 1-Jan The corporation rented a building and paid the first six months rent 39,511 1-Jan The corporation bought equipment and furniture on account 49,007 1-Jan The corporation hired employees who will be paid the following for each month worked on the 10th of the following month 29,606 5-Jan The corporation bought supplies and paid cash 3,338 7-Jan The corporation bought inventory and paid cash 29,851 10-Jan The corporation pays for advertising in the local newspaper and paid cash 896 10-Jan The corporaiton pays for one year of insurance and paid cash 2,691 11-Jan The corporation makes cash sales 39,670 14-Jan The corporation makes sales on account 80,658 31-Jan The corporaiton counts the inventory remaining at the end of the month 18,597 31-Jan The corporation counts the supplies remaining at the end of the month 1,409 31-Jan The corporation paid some of what it owed on account 24,503 31-Jan The corporation collects money owed to them on account 42,426 31-Jan The corporation decides to depreciate the furniture and equipment over 60 months Make the journal entries required for the month of January in the space below

Explanation / Answer

ABC Corporation Journal Entries Date Description Debit ($) Credit ($) 01-Jan Bank 131891      Common stock 131891 (to record checking account in exchange for shares of common stock) 01-Jan Rent Expenses 39511       Bank 39511 (to Record rent paid for 6 months) 01-Jan Equipment and furniture 49007      Accounts Payable 49007 (to record purchase of equipment and furniture on account) 01-Jan The corporation hired employees who will be paid the following for each month worked on the 10th of the following month 19800 19800 NO Entry Equired. Entry will be done on following Month 10th, at the time of Payment 05-Jan Supplies 3338      Bank 3338 (to record purchase of supplies and paid Bank) 07-Jan Inventory 29851      Bank 29851 (to record purchase of   inventory and paid Bank) 10-Jan Advertising Expenses 896      Bank 896 (to Record Advertising Expenses paid ) 10-Jan Insurance Premium 2691      Bank 2691 (to Record one year Insurance Premium paid ) 11-Jan Bank 39670      Sales 39670 (to Record Bank sales made ) 14-Jan Accounts Receivable 80658      Sales 80658 (to Record sales made on account) 31-Jan The corporaiton counts the inventory remaining at the end of the month NO Entry Equired. 31-Jan The corporation counts the supplies remaining at the end of the month NO Entry Equired. 31-Jan Accounts Payable   24503      Bank 24503 (to Record payment made to suppliers) 31-Jan Bank   42426      Accounts Receivable    42426 (to Record Collection made to customers) 31-Jan The corporation decides to depreciate the furniture and equipment over 60 months NO Entry Equired. Entry shall be made at the time of Providing Depreciation and Income Statement.

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