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.
Required:
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).