journal entry

Tyson's Dollar Store was formed on April 1, 2020. The following are the activities prior to opening the doors to the public. The company chooses to use the periodic inventory system. They planned to use LIFO cost system. The company will use a calendar year end. All equipment was deprecited using the straignt-line method. Inventory is grouped by cost price not by item type. The company created a chart of accounts based on their assumption of the activities the company would be involved with, Tyson uses periodic inventory method. Adjusting entries are done at the end of each month. Tyson invest $10k for 50 shares of stock. 1-Apr Received a business loan from TD Bank of $50,000, 6%, 3 years. 1-Apr Sold 50 shares to family member for $10,000. 1-Apr Start-up cost, including attorney fee of $5000 incurred and paid 1-Apr Signed a 10 year lease contract for $2,500 per month for the store and paid a security deposit of $5,000 and 3 months lease payments