Question

Journal Entries

Jan. 1 - Issued 6,500 shares of no-par common stock for $10 per share.
Jan. 1 - Purchased a computer equipment for $5,000. Monthly depreciation for the equipment is $250.
Jan. 3 – Paid $3,000 in rent on the warehouse building for the month of January
Jan. 6 - Purchased office supplies for $6,000.
Jan. 10 - Performed repairs and maintenance on their machine costing $1,500.
Jan. 11 - Purchased inventory on account for $95,000.
Jan. 16 - Declared and paid $15,000 in dividends to its shareholders.
Jan. 21 - Paid $55,000 to its suppliers for inventory purchased on credit in December 2019 ($45,000) and on January 11, 2020 ($10,000).
Jan. 25 - Provided services for which a customer had paid $7,500 in December of 2019 (hint: see the deferred revenue account in the January 1, 2020 trial balance).
Jan. 31 - Paid its employees $24,800 for work performed from December 26 – January 25. $4,800 was for work performed in December 2019, and 20,000 was for work performed from January 1 – January 25, 2020.
During January Packing Inc. made credit sales for $225,000. The cost of the goods sold was $123,750 (make one summary entry for the entire month).
During January Packing Inc. collected $145,000 in accounts receivable from customers (make one summary entry for the entire month).

Answer 1

Date	Account Titles	Debit	Credit
Jan 1	Cash	65,000
	Common Stock		65,000
Jan 1	Computer	5,000
	Cash		5,000
Jan 1	Rent expense	3,000
	Cash		3,000
Jan 6	Office Supplies	6,000
	Cash		6,000
Jan 10	Repair expense	1,500
	Cash		1,500
Jan 11	Merchandise inventory	95,000
	Accounts payable		95,000
Jan 16	Retained earnings	15,000
	Dividends payable		15,000
Jan 16	Dividends payable	15,000
	Cash		15,000
Jan 21	Accounts payable	55,000
	Cash		55,000
Jan 25	Unearned revenue	7,500
	Service revenue		7,500
Jan 31	Salaries payable	4,800
	Salaries expense	20,000
	Cash		24,800
Jan 31	Accounts receivables	225,000
	Sales		225,000
Jan 31	Cost of goods sold	123,750
	Merchandise inventory		123,750
Jan 31	Cash	145,000
	Accounts receivables		145,000