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 1^st 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.