Answer and Explanation:
The Journal entries are prepared below:-
1. Cash Dr, $360,000
To Common Stock capital $360,000
(Being issue of shares is recorded)
2. Equipment Dr, $52,000
To Cash $13,000
To Note payable $39,000
(Being equipment is recorded)
3. Inventory Dr, $110,000
To Accounts payable $110,000
(Being inventory is recorded)
4. Accounts receivable Dr, $150,000
To Sales revenue $150,000
(Being sales revenue is recorded)
Cost of goods sold Dr, $90,000
To Inventory $90,000
(Being cost of goods sold is recorded)
5. Rent expenses $4,750
To Cash $4,750
(Being rent expense is recorded)
6. Prepaid Insurance $6,250
To Cash $6,250
(Being cash paid is recorded)
7. Accounts Payable Dr, $90,000
To Cash $90,000
(Being cash paid is recorded)
8. Cash Dr, $67,500
To Accounts receivable $67,500
(Being cash receipt is recorded)
9. Depreciation expenses Dr, $1,300
To Accumulated depreciation $1,300
(Being depreciation expense is recorded)
