Question

Prepare journal entries：

Jan. 1         Sold 5,000 shares of capital stock for a total of $500,000 cash.

Jan. 2         Paid the premium of $12,000 on a 24-month insurance policy on all assets.

Jan. 3         Purchased land and a building for a total of $350,000 cash. The land is valued at $50,000, while the building is valued at $300,000 and is expected to have a useful life of 30 years.

Jan. 10          Purchased a computer network system for $36,000 cash. The expected useful life is 6 years.

Jan. 15          Paid $2,400 cash for a phone system that should have a 3-year useful life.

Jan. 16          Paid cash to acquire equipment and furniture for business purposes at a cost of $12,000. The expected useful life is 4 years.

Jan. 19          Purchased office supplies for $1,250 cash. (Use the asset account “Office Supplies” for such purchases.)

Jan. 24          Paid cash of $10,000 for binders, manuals, and workbooks for use in Sheldon's client programs. Sheldon's policy is to initially record these materials as an asset (Program Supplies) and to then expense the materials used for a particular training program when the program is completed.

Jan. 30          Paid wages of $1,800 and salaries of $3,600 for work performed during January.

Answer 1

• Journal entries as asked are given below [No transaction is on account]

Date	Accounts title	Debit	Credit
01-Jan	Cash	$        500,000.00
	Capital Stock		$      500,000.00
	(   Cash received for stock)
02-Jan	Prepaid Insurance	$          12,000.00
	Cash		$        12,000.00
	(24 months insurance paid in advance)
03-Jan	Land	$          50,000.00
	Building	$        300,000.00
	Cash		$      350,000.00
	(Land & Building purchased)
10-Jan	Office Equipment (Computer network System)	$          36,000.00
	Cash		$        36,000.00
	(Equipment purchased for    Cash)
15-Jan	Office Equipment (Phone System)	$             2,400.00
	Cash		$           2,400.00
	(Equipment purchased for    Cash)
16-Jan	Equipment & Furniture	$          12,000.00
	Cash		$        12,000.00
	(assets acquired for    Cash)
19-Jan	Office Supplies	$             1,250.00
	Cash		$           1,250.00
	(Supplies purchased for    Cash)
24-Jan	Program Supplies	$          10,000.00
	Cash		$        10,000.00
	(Amount paid for program supplies)
30-Jan	Wages expenses	$             1,800.00
	Salaries expenses	$             3,600.00
	Cash		$           5,400.00
	(Wages & salaries for January paid in    Cash)