The Jardine Tax Services Company was established on January | of the current year to help clients with their tax planning and with the preparation of their tax returns. During January, the company entered into the following transactions:

Date Transactions Jan. 2 D. Jardine set up the company by investing $5,000 in the company’s checking account.

3 The company paid $2,400 in advance for one year’s rent of office space.

4 Office equipment was purchased at a cost of $6,000.A down payment of $1,000 wasmade, and a $5,000 note payable was signed for the balance owed. The note is due in one year.

7 Office supplies were purchased for $800 cash.

16 Fees of $1,700 were collected from clients for tax services provided during the first half of January.

29 A salary of $700 was paid to the office secretary.

30 Jardine withdrew $900 for personal use.

31 The January utility bill of $120 was received; it will be paid in early February.

3] Clients were billed $2,300 for tax services performed during the second half of January.

31 Jardine recorded the following adjustments:

a. Rent expense for the month

b. Depreciation of $45 on office equipment

c. Interest expense of $50 on the note payable

d. Office supplies used (the office supplies on hand at the end of the month cost :

$720)

Required: (1) Record the preceding transactions in appropriate T-accounts.

(2) Prepare a classified income statement for the company for January.

(3) Prepare a balance sheet for the company on January 31.

(4) Briefly comment on how well the company did during January. lop52