5.) Assume the year is 1964, and Phil Knight has just created a shoe company....
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5.) Assume the year is 1964, and Phil Knight has just created a shoe company. He has decided to name his company Nike, and plans to transform the quality of everyday tennis shoes, as well as develop high- end performance shoes for athletes. This is Nike's first year of operations (the beginning balance is zero for total assets, total liabilities, and shareholder's equity). The following are the transactions for the month of January: 1.) Received $5000 from each of its two owners in exchange for no-par common stock 2.) Purchased $400 of office supplies on credit 3.) Purchased manufacturing equipment for $7500, paying $2500 in cash and signing a $5000 note payable 4.) Provided sports consulting services to clients and billed them $4000 for the services performed 5.) Paid $600 in cash for office rent 6.) Paid $200 cash for office supplies from transaction 2 7.) Received a $600 bill for advertising services provided for Nike during January 8.) Paid $2000 in cash for employees' January salaries 9.) Received a $4000 check from clients for services performed in transaction 4 10.) Total supplies on hand at the end of January amounted to $50. Perform the appropriate journal entries for the above transactions
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