Journal Entries Assignment Question: Recording Financial Transactions

Background: You have recently been appointed as the junior accountant at XYZ Corporation, a growing business with diverse financial transactions. Your task is to record the following financial transactions in the general journal for the month of January. Ensure accurate journal entries, considering the appropriate accounts, debits, and credits.

Financial Transactions:

January 1:

The company issued 10,000 shares of common stock at $5 per share, receiving full payment.

January 5:

Purchased office supplies on account for $1,200.

January 10:

XYZ Corporation provided services to a client and issued an invoice for $7,500. The client is expected to pay within 30 days.

January 15:

Paid $2,000 in cash for rent expense for the month.

January 20:

Received $6,000 from the client mentioned in transaction #3 as payment for services.

January 25:

Recorded $500 of depreciation on office equipment for the month.

January 31:

Accrued $800 of utilities expense for the month.

Assignment Tasks:

Prepare General Journal Entries:

Create journal entries for each transaction, indicating the date, accounts affected, and the corresponding debits and credits. Ensure that the accounting equation remains balanced for each entry.