Step 1: Record the journal entries for the following transactions in January 2022:

(1) Jan-1, ABC firm received $500,000 cash from issuing the common stocks

(2) Jan-3, ABC firm borrowed $500,000 cash from a bank . The loan is for five years (3) Jan-3, ABC firm purchased a machine for 600,000 and paid cashThe machine can be used years with no residual value afterwards . Show the journal entries for the machine purchase the first month's depreciation

(4) Jan-5, ABC firm purchased $10,000 raw materials from its supplier on credit

(5) Jan-7, ABC firm paid $20,000 rent by cash (among which 5,000 is the rent for January, the rest is the deposit to the landlord )

(6) Jan-10, ABC firm sold $15,000 products to a client on credit and the inventory cost of the products is $8,000Show the journal entry for the sales transaction

(7) Jan-25, ABC firm collected $10,000 cash from a credit sale to the client

(8) Jan-26, ABC firm received $10,000 cash payment for the products to be shipped to a client next month

(9) Jan-30, ABC firm prepaid the fire insurance premium of 5,000 for next year (10) Jan-31 ABC firm announced to pay $2,000 cash dividend to its shareholders. The dividend will be paid in the first week of February

Step 2: Prepare the ABC firm's general ledger T-accounts based on the journal entries in January, 2022.

Asset account

Liability

Equity

Revenue

Expenses

Step 3. Prepare the trial

Step4: Prepare the income statement and the balance sheet for the ABC firm in the end of January 2022.