This may be completed with Excel, The T-Account Tool or manually.

1. Record the following entries for year 1:

a. The corporation sells $55,000 of stock (1,000 shares).

b. The corporation pays $6,000 for a six-year lease.

c. The corporation purchases $1,700 of supplies for cash.

d. The corporation buys $10,600 of inventory on account.

e. The corporation buys $5,000 of equipment for $3,000 cash and $2,000 notes payable.

f. The corporation pays the vendor bill in (d).

g. The corporation buys $4,500 of inventory on account again.

h. The corporation pays the stockholders $3,000 for dividends.

i. The corporation has cash sales of $18,000 and credit sales of $2,000. The inventory cost is $9,000.

j. The corporation pays $200 for consulting expense.

k. The corporation pays $300 for advertising expense.

l. The corporation pays $2,200 for salaries expense.

m. The corporation pays $250 for utilities expense.

n. The corporation has $700 of supplies left.

o. The corporation used one year of the lease.

p. The equipment wore out by $500.

q. The corporation owes (hasnt paid yet) interest of $100 for the notes payable.

r. The company is in a 10% tax bracket and accrues now for taxes it will pay later.