J&F Inc. case: entries during the period Transaction 1 - Equity issuance October 1st, 20X1: John and Frank create J&F Inc., investing $60,000. They receive 3,000 shares of common stock each ($10 per share). Transaction 2 - Debt financing October 1st, 20X1: Borrowed $40,000 from a local bank. Signed a note payable that requires 20% annual principal payments of equal amt, for 5 years 10% annual interest payment on outstanding balance for 5 year Transaction 3 - New shareholder October 25th, 20X1: John sells 50% of his shares to his cousin Mary, at $ 11 price . per share