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Sell 50,000 shares of common stock for $50,000 to obtain the funds necessary to start your business. Borrow $20,000 from the local bank and sign a note promising to repay the full amount of the debt in 5 years. Issue 1,500 shares of $2 par value preferred stock at $30/share. Purchase equipment necessary for business operations for $15,000. Pay one year of rent in advance, $12,000 ($1,000 per month.) Purchase supplies on account, $800. Purchase 200 units of inventory with cash. Provide 40 hours of services to customers for cash (calculate using your hourly service rate). Sell 100 units of inventory on account. (Perpetual method
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Sell 50,000 shares of common stock for $50,000 to obtain the funds necessary to start your business....
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