Annette Creighton opened Creighton Consulting. She rented a small office and paid a part-time worker to answer the telephone and make deliveries. Her chart of accounts is as follows:

Creighton's transactions for the first month of business are as follows:
Jan. 1 Creighton invested cash in the business, $10,000.
1 Paid rent, $500.
2 Purchased office supplies on account, $300.
4 Purchased office equipment on account, $1,500.
6 Received cash for services rendered, $580.
7 Paid telephone bill, $42.
8 Paid utilities bill, $38.
10 Received cash for services rendered, $360.
12 Made payment on account, $50.
13 Paid for car rental while visiting an out-of-town client (transportation expense), $150.
15 Paid part-time worker, $360.
17 Received cash for services rendered, $420.
18 Creighton withdrew cash for personal use, $100.
20 Paid for a newspaper ad, $26.
22 Reimbursed part-time employee for cab fare incurred delivering materials to clients (transportation expense), $35.
24 Paid for books on consulting practices (miscellaneous expense), $28.
25 Received cash for services rendered, $320.
27 Made payment on account for office equipment purchased, $150.
29 Paid part-time worker, $360.
30 Received cash for services rendered, $180.
REQUIRED
1. Set up general ledger accounts from the chart of accounts.
2. Journalize the transactions for January in a two-column general journal. Use the following journal page numbers: January 1–10, page 1; January 12–24, page 2; January 25–30, page 3.
3. Post the transactions to the general ledger.
4. Prepare a trial balance.
5. Prepare an income statement and a statement of owner's equity for the month of January and a balance sheet as of January 31,20--.

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Chart of Accounts Assets 101 Cash Revenues 401 Consulting Fees 142 Office Supplies 181 Office Equipment Expenses 511 Wages Expense 512 Advertising Expense 521 Rent Expense 525 Telephone Expense 526 Transportation Expense 533 Utilities Expense 549 Miscellaneous Expense Liabilities 202 Accounts Payable Owner's Equity 311 Annette Creighton, Capital 312 Annette Creighton, Drawing