Continental Breakfast Company was formed in 2023. During the year the company had the following events occur:

1. The company issued $100,000 in common shares for cash.
2. The company purchased equipment for $15,000, paying $5,000 down and signing a 1-year, 8% note for the balance.
3. The company hired 4 employees.
4. The company had sales of $250,000. All sales were on account.
5. The company incurred the following expenses: rent: $2,000, salaries: $20,000, advertising $2,000, and utilities $4,000. All expenses were paid in cash.

Required

1. Prepare the journal entries to record the above transactions.

Continental Breakfast Company was formed in 2023. During the year the company had the following events occur:

1. The company issued $100,000 in common shares for cash.
2. The company purchased equipment for $15,000, paying $5,000 down and signing a 1-year, 8% note for the balance.
3. The company hired 4 employees.
4. The company had sales of $250,000. All sales were on account.
5. The company incurred the following expenses: rent: $2,000, salaries: $20,000, advertising $2,000, and utilities $4,000. All expenses were paid in cash.

Required

1. Prepare the journal entries to record the above transactions.