B Economic Events and Journal Entries for Toy Shoppe Entry Date Description (Account/Explanation) Debit Credit 1 12/1/2022 Dan buys 1,000 shares of common stock with a par value of $1 in his newly formed company for $14,000. Cash 14,000 Common Stock 1,000 Paid In Capital 13,000 2 12/1/2022 The company borrows $15,000 from the bank. The interest rate on the loan is 6%. Cash Loan Payable 3 12/2/2022 The company pays rent expense of $2,100. 3 Rent Expense Cash 789 4 20 5 21 22 23 24 6 25 26 15,000 2,100 15,000 2,100 12/2/2022 FedEx delivers inventory ordered "on account." The box includes an invoice for $25,000 (500 toys at $50 each). The invoice (bill) is due in 30 days. The corporation uses a 100% markup which means the retail price of each toy will be $100. Inventory 25,000 Accounts Payable 25,000 12/2/2022 The company paid cash for $4,800 of equipment. The equipment estimated useful life is 4 years. Equipment Cash 4,800 12/31/2022 The store sold 300 toys for $100 each to customers on account. The company sent an invoice for the sales price plus the 8% sales tax Accounts Receivable: 32,400 Instructions General Journal T Accounts Financial Statements 4,800