We are following Param around for the first year as he starts his guitar store called Param Guitar Shop. Here are the events that take place. As an accounting of PGS, you need do the journal for that year.

• January 1- Param forms the corporation by purchasing 10,000 shares of $1 par stock.
• January 15- Param finds a nice retail storefront in the local mall and signs a lease for $500 a month.
• Feb 1-PGS takes out a bank loan to renovate the new store location for $100,000 and agrees to pay $1,000 a month. He spends all of the money on improving and updating the stores fixtures and looks.
• Feb 15-PGS purchases $50,000 worth of inventory to sell to customers on account with its vendors. He agrees to pay $1,000 a month.
• March 1- PGSs first rent payment is due.
• March 15- PGS has a grand opening and makes it first sale. It sells a guitar for $500 that cost $100.
• April 1 - PGS sells another guitar to a customer on account for $300. The cost of this guitar was $100.
• April 15- PGS pays electric bill for $200.
• April 30- PGS purchases supplies to use around the store.
• May 15- Param is getting so busy that he decides to hire an employee for $500 a week. Pay makes his first payroll payment.
• May 30 -PGSs first vendor inventory payment is due of $1,000.
• June 1 -Param starts giving guitar lessons and receives $2,000 in lesson income.
• June 30- PGSs first bank loan payment is due.
• November 30- PGS has more cash sales of $25,000 with cost of goods of $10,000.
• December 15- In lieu of paying himself, Param decides to declare a $1,000 dividend for the year.