Question - Prepare the following journal entries of David Company, a company who makes computers.
March 1. Issued 1,000 shares of $ 1.00 par value common stock at $ 5.00 to shareholders
March 4 Paid insurance for one year starting on March 1, 2017, and ending on February 28, 2018 in the amount of $ 50,000.
March 8. Sold $20,000 of our computers. to a customer on account.
March 10 Paid rent in advance for 1 year in the amount of $ 100,000.
March 15. Collected cash from the March 8th transaction of $ 5,000.
March 20: Purchased $ 20,000 in inventory from a vendor on account.
Prepare the journal entries for the above transactions.