November 1, 2017

Mark Peavy created Peavys Cleaning Service Corporation and hired a lawyer to perform the incorporation for a fee of $500. The par value of the common stock will be $1 per share and 50,000 shares are authorized in the charter of incorporation. Mark purchased 20,000 shares of the corporations common stock for $20,000 using his personal funds. The corporation will operate an office cleaning service business in Pike Road, Alabama. The business will prepare financial statements on a monthly basis and calculate depreciation/amortization at June 30 and December 31, respectively, using the straight-line method. Any fixed assets purchased during the month are treated as if purchased at beginning of month. Interest is accrued at year-end and when paid. Mark paid the lawyer the incorporation fee.

What is the journal entry?