Post Journal Entries for transactions.

The following transactions took place during fiscal 2021 (Jan. 1 to Dec. 31, 2021).

1. Jan. 1: Smith issued $25,000 of common stock. Smith also took a bank loan of $25,000 at 5% per annum (simple interest). The entire principal amount is due in two years, i.e., on Jan. 1, 2023.

2. Jan. 1: Smith paid $12,000 cash to purchase an equipment. The equipment has an estimated useful life of 10 years and an estimated salvage value of $2,000.

3. Jan. 1: Smith paid $4,000 cash for two years of insurance coverage starting on Jan. 1, 2021.

4. Feb 1: Smith rented a building and paid $3,600 for one years rent (starting 2/1).

5. March 1: Smith purchased $4,600 of inventory on account.

6. June 1: Smith sold $20,000 of software on account. The cost is $4,000.

7. Sept. 1: Smith collected $6,000 cash from its customers for the previous sales on account.

8. Oct 31: Smith paid $3,600 cash for employee wages earned during the first ten months (Jan 1 to October 31, $360 per month).

9. Nov. 1: Smith paid $2,300 cash to suppliers for inventory purchases made on account.

10. Dec 1: Smith started an on-line service where customers pay an annual subscription fee when they sign up for a 12-month service plan. On Dec. 1, Smith received $4,800 of cash from customers for one year of subscription fees (for online services from Dec. 1, 2021 to Nov. 30, 2022).