Example One:

The following transactions apply to ABC, Inc. for May 2018, its first month of operations.

Record each of the following transactions in general journal form. ABC Inc. uses the perpetual inventory method.

May 1, issued 65,000 shares of $2 par common stock for $10 per share.

May 1, paid $3,200 for Januarys utilities.

May 2, purchased $12,000 of supplies on account.

May 8, purchased $13,000 of merchandise, on account.

May 15, borrowed $20,000 by signing a 5%, 5-year note.

May 12, sold inventory for $16,000, on account. Cost of the merchandise was $9,000.

May 20, paid $8,000 on accounts payable.

May 21, received $11,000 on accounts receivable.

May 22, declared a $4,500 dividend with a date of record January 25.

May 30, paid the $4,500 dividend.

Date	Account Name	Debit	Credit
Date	Account Name	Debit	Credit