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Step 1: Record the journal entries for the following transactions in January 2019: Account Debit...

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Accounting

Step 1: Record the journal entries for the following transactions in January 2019: Account Debit Credit (1) Jan-1, ABC firm received $500,000 cash from issuing the common stocks. (2) Jan-3, ABC firm borrowed $500,000 cash from a bank. The loan is for five years. (3) Jan-3, ABC firm purchased a machine for $600,000 and paid cash. The machine can be used for 5 years with no residual value afterwards. Show the journal entries for the machine purchase and the first month's depreciation. (4) Jan-5, ABC firm purchased $10,000 raw materials from its supplier on credit. Three months later, ABC firm paid off the purchase by cash. Show separate journal entries for both the initial purchase on credit and the cash Step 2: Prepare the ABC firm's general ledger T-accounts based on the journal entries in January,2022

Asset account, Liability, equity, revenue, expenses

Step 3. Prepare the trial balance worksheet in the table below: (trial balance)

(debit) (credit )

Assets accounts, Liability accounts, equity accounts, revenue accounts, expenses accounts, Total

Step 4. Prepare the income statement and the balance sheet for the ABC firm in the end of January 2022.

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