Question
Please journalize the following events. The company only pays federal taxes at a rate of 40% on all profits. Jan. 1: Company began on 1/1/2017
Please journalize the following events. The company only pays federal taxes at a rate of 40% on all profits.
Jan. 1: Company began on 1/1/2017 with the sale of stock to owners for $250,000.
Jan. 1: Purchased equipment for $22,500 cash. Equipment has a 4 year life, $2,000 residual value, and is depreciated using the double declining balance (DDB) method.
Jan. 2: Hired an employee who will make $1,000/month. She will be paid on the 1st of every month.
Jan. 3: Signed a note payable at the local bank for $50,000. The note is due in 1 year and the interest rate is 10% per year, payable at the due date, January 2, 2018.
Jan. 4: Purchased a two-year insurance policy for $4,800.
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