Question: January 1 Issued common stock in exchange for $119,000 cash. January 2 Purchased inventory on account for $26,000 (the perpetual inventory system is used). January 4 Paid an insurance company $1,320 for a one-year insurance policy. Prepaid insurance was debited for the entire amount. January 10 Sold inventory on account for $11,100. The cost of the inventory was $6,100. January 15 Borrowed $21,000 from a local bank and signed a note. Principal and interest at 10% is to be repaid in six months. January 20 Paid employees $5,100 salaries for the first half of the month. January 22 Sold inventory for $9,100 cash. The cost of the inventory was $5,100. January 24 Paid $14,100 to suppliers for the inventory purchased on January 2. January 26 Collected $5,550 on account from customers. January 28 Paid $1,100 to the local utility company for January gas and electricity. January 30 Paid $3,100 rent for the building. $1,550 was for January rent, and $1,550 for February rent. Prepaid rent and rent expense were debited for their appropriate amounts.