You are presented with the following transactions for the Dankail Corporation for the month of January:
Jan. 2 Issued $10,000 of common shares for cash.
5 Provided services on account, $2,500.
6 Obtained a bank loan for $30,000.
7 Paid $40,000 to purchase a hybrid car to be used solely in the business.
9 Received a $5,000 deposit from a customer for services to be provided in the future.
12 Billed customers $20,000 for services performed during the month.
19 Paid $500 to purchase supplies.
20 Provided $1,500 of services for the customer who paid in advance on January 9.
23 Collected $5,000 owing from customers from the January 12 transaction.
26 Received a bill for utilities of $125, due February 26.
29 Paid rent for the month, $1,500.
31 Paid $4,000 of salaries to employees.
31 Paid interest of $300 on the bank loan from the January 6 transaction.
31 Paid income tax for the month, $3,600.
Instructions
(a) For each of the above transactions, prepare a (1) basic analysis, (2) equation analysis, and (3) debit-credit analysis.
(b) Prepare journal entries to record the above transactions.