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

Answer 1

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.