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