Journal entries

Davis Consulting is both doing consulting service and selling accounting software and uses the perpetual inventory system to account for software inventory. During January, Davis Consulting completed the following transactions Jan. 1 Issued 10,000 of shares with the par value of $5, received $100,000. 2 Completed a consulting engagement and received cash of $7,800. 2 Prepaid three months office rent, $1,650. 7 Purchased 80 units software inventory on account, $1,680, plus freight in, $80. (5/15, EOM) 18 Sold 40 software units on account, $3,500 (cost $880). (3/10, n/30) 19 Borrow 5,000 of cash from a bank. 20 Paid employee salaries, $2,055, which includes accrued salaries from December of 1,000. 21 Paid on account, $1,760. 22 Received full payment of the sale on Jan. 18. 24 Paid utilities, $250. 25 Paid for half of the inventory bought in Jan. 7. 28 Bought 1,000 shares of stock back and paid for 7,000. (cost method) 31 Recorded the following adjusting entries:| a. Accrued salaries expense, $686 b. depreciation, $100 (equipment, $30; Furniture, $70) c. expiration of prepaid rent, $550