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Assume that you are the owner of Teason Corporation, a hypothetical company that both provides a service and sells a product. You will act as the accountant for this company, and consequently you will perform all of the steps in the accounting cycle You will be required to complete one month of the accounting cycle for your company and prepare financial statements. Service Revenue Per Hour Sales Revenue Per Unit Purchase Price er Unit 58.50 181.50 132.50 - General Journal Record the following journal entries in the General Journal Teason Corporation uses a perpetual inventory system and values inventory with the FIFO method Teason Corporation offers a sales discount of 2/10, net 30 to all customers who purchase on account. Trans. Date Description Sell 50,000 shares of $1 par common stock for $50,000 to obtain the funds necessary to start your business Borrow $20,000 from the local bank and sign a note promising to repay the full amount of the debt in 5 years. The interest rate is 10% May 1 May 1 May 1 May 1 May 1 Issue 1,500 shares of $2 par value preferred stock at $30/share Purchase equipment necessary for business operations for $15,000 Pay one year of rent in advance, $12,000 ($1,000 per month.) Purchase supplies on account, $800 Purchase 200 units of inventory with cash 4 May 3 May 3 May 6 May 10 Provide 40 hours of services to customers for cash (calculate using your hourly service rate)] Sell 100 units of inventory on account. Sell 50 units of inventory to a customer on account 8

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