Question
Sarah Jones started a new business in January, 2012. Thefollowing are selected events that occurred in the businessduring the first year of operation. Please provide
Sarah Jones started a new business in January, 2012. Thefollowing are selected events that occurred in the businessduring the first year of operation. Please provide journalentries for these events (explanations are not necessary). 1. Sarah invested $65,000 to start the business, SaJon Inc.and received 100 shares of stock from the business. 2. Purchased inventory of $40,000 on account. 3. Signed a lease for two years for $24,000. The company paid $5,000 immediately; this was two month's rent in advance plus a security deposit. 4. Sold inventory, which cost $4,000, on account for $7,000 (recognize both the revenue and the expense). 5. Paid for the inventory purchased in 2). 6. Received payment for the amount billed in 4). 7. Paid $3,000 in salaries .8. Recognized the rent expense for the first month
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