1. a. Received shareholders cash contributions on February 1 totaling $16,000 to form the corporation; issued 1,000 shares of common stock.

2. b. Paid $2,400 cash on February 2 for three months rent for office space.

3. TIP: For convenience, simply record the full amount of the payment as an asset (Prepaid Rent). At the end of the month, this account will be adjusted to its proper balance.

4. c. Purchased and received supplies on February 3 for $300 cash.

5. d. Signed a promissory note on February 4, payable in two years; deposited $10,000 in the companys bank account.

6. e. On February 5, paid cash to buy equipment for $2,500 and land for $7,500.

7. f. Placed an advertisement in the local paper on February 6 for $425 cash.

8. g. Recorded sales on February 7 totaling $1,800; $1,525 was in cash and the rest on accounts receivable.

9. h. Collected accounts receivable of $50 from customers on February 8.

10. i. On February 9, repaired one of the computers for $120 cash.

11. TIP: Most repairs involve costs that do not provide additional future economic benefits.

12. j. Incurred and paid employee wages on February 28 of $420.

General Journal Debit | Credit Date Feb 01 Record entry Clear entry View general journal