Question - The following activity occurred during May 2016 for ABC Inc.:
Date - Description
May 1 Owner invested $145,000 in cash in exchange for 1,000 shares of $1 par common stock.
May 4 Company sold $5,000 worth of goods. Customer paid half cash and half on account. The merchandise sold had a cost to the company of $3,500.
May 6 Accepted $500 of advance payments from customers for services to be provided next month.
May 27 Received a utility bill for $450. Payment is due in 30 days. The company decides to wait exactly 30 days to pay.
May 29 Mr. Jones paid in full the outstanding debt he had with the company.
May 31 The company declares a stock split.
Using the information above, what journal entry would be required to record the transaction of May 1?