1. Below you will find data to create events to add journal entries for the financial statements. 

January 15 The corporation sells 1,000 shares with par value of $ 5 each for $ 50,000.

January 20 the corporation buys equipment for $ 10,000. The depreciation will be in a straight line (Straight Line) to five years with a "salvage value" of $ 1,000.

January 31 The company pays its first payroll of employees for $ 4,000. For entry purposes, calculate the employer's social security and medicare contributions. Consider that $ 500 in income tax was withheld from employees.

January 31 The company purchases $ 5,000 worth of items to resell on credit.

Sales Assume the following monthly sales:

$ 20,000.00 February $ 30,000.00 March $ 30,000.00 April $ 45,000.00 May $ 25,000.00 June $ 25,000.00 July $ 35,000.00 August $ 30,000.00 September $ 35,000.00 October $ 30,000.00 November $ 30,000.00 December

Make separate entries for each month.

Electricity expenses: assume 10% of the sales of each month Water "Assume 2% of sales each month Phone, assume $ 100 per month Rent: assume $ 3,000 per month

Inventories Take on monthly purchases for 30% of sales. Remember that it is first recorded as inventory and when the merchandise is sold it is recognized as "Cost of Goods Sold".

Assume that the expenses mentioned in the previous part are made the following month. This will cause you to have an accounts payable as of December 31st.

Notes: 1. Remember that sales are cash 2. Payments entail a debit to the corresponding expense and credit to cash