Question: Ryan Olson organized a new company MeToo Inc The company

Ryan Olson organized a new company, MeToo, Inc. The company provides networking management services on social network sites. You have been hired to record the following transactions.
a. May 1: Issued 1,000 shares of common stock to investors for $ 30 per share.
b. May 15: Borrowed $ 50,000 from the bank to provide additional funding to begin operations; the note is due in two years.
c. May 31: Paid $ 2,400 for a one- year fire insurance policy with coverage starting June 1.
d. June 3: Purchased furniture for the store for $ 15,000 on account. The amount is due within 30 days.
e. June 5: Placed advertisements in local college newspapers for a total of $ 250 cash.
f. June 9: Sold services for $ 400 cash.
g. June 14: Made full payment for the furniture purchased on account on June 3.
For each of the transactions, prepare journal entries. Be sure to categorize each account as an asset (A), liability (L), stockholders’ equity (SE), revenue (R), or expense (E).

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  • CreatedNovember 02, 2015
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