Answer:
1. Jay BradFord invested $40,000 cash in the company, as its sole owner.
Account                     Debit          Credit
Cash                          $40,000
Capital                                          $40,000
2. Hired two employees to work in the warehouse. They will each be paid a salary of $3,050 per month.
Account                     Debit          Credit
Wage Expense         $3,050
Wages Payable                           $3,050
3. Signed a 2-year rental agreement on a warehouse; paid $24,000 cash in advance for the first year.
Account                     Debit          Credit
Prepaid Rent             $24,000
Cash                                              $24,000
4. Purchased furniture and equipment costing $30,000. A cash payment of $10,000 was made immediately; the remainder will be paid in 6 months.
Account                                Debit          Credit
Furniture and Equipment   $30,000
Cash                                                        $10,000
Accounts Payable                                  $10,000
5. Paid $1,800 cash for a one-year insurance policy on the furniture and equipment.
Account                                Debit          Credit
Prepaid Insurance               $1,800
Cash                                                        $1,800
6. Purchased basic office supplies for $420 cash.
Account                                Debit          Credit
Office supplies                    $420
Cash                                                         $420
7. Purchased more office supplies for $1,500 on account.
Account                                Debit          Credit
Supplies                               $1,500
Accounts Payable                                   $1,500
8. Total revenues earned were $20,000—$8,000 cash and $12,000 on account.
Account                                Debit          Credit
Revenue                                                  $20,000
Cash                                     $8,000
Accounts Receivable          $12,000
9. Paid $400 to suppliers for accounts payable due.
Account                                Debit          Credit
Accounts Payable                $400
Cash                                                         $400
10. Received $3,000 from customers in payment of accounts receivable.
Account                                Debit          Credit
Accounts Receivable                              $3,000
Cash                                     $3,000
11. Received utility bills in the amount of $380, to be paid next month.    
Account                                Debit          Credit
Utility Expense                    $380
Accounts Payable                                   $380
12. Paid the monthly salaries of the two employees, totaling $6,100.
Account                     Debit          Credit
Wage Expense                            $3,050
Wages Payable         $3,050