USA Journalizing a few items - HELP PLEASE!!!

[jeff Rodgers]

Hello, I'm going to Harvard and in an accounting class for my Masters in Management, I am having trouble journalizing the below data set - any help is greatly appreciated.

Sarah Jones started a new business in January, 2012. The following are selected events that occurred in the business during the first year of operation. Please provide journal entries for these events (explanations are not necessary).


1. Sarah invested $95,000 to start the business, SaJon Inc. and received 200 shares of stock from the business.

2. Purchased inventory of $40,000 on account.

3. Signed a lease for two years for $36,000. The company paid $5,000 immediately; this was two month's rent in advance plus a security deposit.

4. Sold inventory, which cost $25,000, on account for $55,000 (recognize both the revenue and the expense).

5. Paid for the inventory purchased in 2).

6. Received payment for the amount billed in 4).

7. Paid $3,000 in salaries.

8. Recognized the rent expense for the first month.

 

[jeff Rodgers]

Primarily with #'s 3, 4 and 8. Thanks...

 

[jeff Rodgers]

Im here so far...


1. Sarah invested $95,000 to start the business, SaJon Inc. and received 200 shares of stock from the business.

Cash 95 dr.
Common Stock 95 cr.
- 200 shares

2. Purchased inventory of $40,000 on account.

Inventory 40 dr.
A/P 40 cr.

3. Signed a lease for two years for $36,000. The company paid $5,000 immediately; this was two month's rent in advance plus a security deposit.

Cash 5000 cr.
Prepaid rent 3000 dr.
Security deposit 2000 dr.

Not sure if I have to recognize the $36k in any way.

4. Sold inventory, which cost $25,000, on account for $55,000 (recognize both the revenue and the expense).

A/R 55000 dr.
Sales 55000 cr.

Not sure how to recognize the expense.

5. Paid for the inventory purchased in 2

Cash 40000 cr.
A/P 40000 dr.

6. Received payment for the amount billed in 4

Sales 55000 dr.
A/R 55000 cr.

7. Paid $3,000 in salaries.

Salary expense 3000 dr.
Salary 3000 cr.

8. Recognized the rent expense for the first month.

Not sure on this one.

 

[Triest123]

Im here so far...


.

1. Sarah invested $95,000 to start the business, SaJon Inc. and received 200 shares of stock from the business.

Cash 95000 dr.
Common Stock 95000 cr.
- 200 shares

2. Purchased inventory of $40,000 on account.

Inventory 40000 dr.
A/P 40000 cr.

3. Signed a lease for two years for $36,000. The company paid $5,000 immediately; this was two month's rent in advance plus a security deposit.

Cash 5000 cr.
Prepaid rent 3000 dr.
Security deposit 2000 dr.

Not sure if I have to recognize the $36k in any way.
(No need to recognize this $36k as it is just a contractual obligation)

4. Sold inventory, which cost $25,000, on account for $55,000 (recognize both the revenue and the expense).

A/R 55000 dr.
Sales 55000 cr.

Not sure how to recognize the expense.
(Cost of goods sold 25000 dr.
Inventory 25000 cr.)

5. Paid for the inventory purchased in 2

Cash 40000 cr.
A/P 40000 dr.

6. Received payment for the amount billed in 4

Cash 55000 dr.
A/R 55000 cr.

7. Paid $3,000 in salaries.

Salary expense 3000 dr.
Cash 3000 cr.

8. Recognized the rent expense for the first month.

Rent 1500 dr.
Prepaid rent 1500 cr.

 

[jeff Rodgers]

Thank you very much!!!! Huge help!