The accounting practice Emily Schneider, Accountant, P.C., now includes a great deal of systems consulting business. In conjunction with the consulting, the business has begun selling accounting software. During January the business completed these transactions:

Jan. 2 Completed a consulting engagement and received cash of \(\$ 5,800\).

2 Prepaid three months' office rent, \(\$ 1,500\).

7 Purchased accounting software on account for merchandise inventory, \(\$ 4,000\).

16 Paid employee salary, \(\$ 1,400\).

18 Sold accounting software on account, \(\$ 1,100\) (cost \(\$ 700\) ).

19 Consulted with a client for a fee of \(\$ 900\) on account.

21 Paid on account, \(\$ 2,000\).

24 Paid utilities, \(\$ 300\).

28 Sold accounting software for cash, \(\$ 600\) (cost \(\$ 400\) ).

31 Recorded these adjusting entries:

Accrued salary expense, \(\$ 1,400\).

Accounted for expiration of prepaid rent.

Depreciation of office furniture, \(\$ 200\).

1. Open the following T-accounts in the ledger: Cash, Accounts Receivable, Accounting Software Inventory, Prepaid Rent, Accumulated Depreciation-Office Furniture, Accounts Payable, Salary Payable, Retained Earnings, Income Summary, Service Revenue, Sales Revenue, Cost of Goods Sold, Salary Expense, Rent Expense, Utilities Expense, and Depreciation Expense-Office Furniture.
2. Journalize and post the January transactions. Key all items by date. Compute each account balance, and denote the balance as Bal. Journalize and post the closing entries. Denote each closing amount as Clo. After posting, prove the equality of debits and credits in the ledger.
3. Prepare the January income statement of Emily Schneider, Accountant, P.C. Use the singlestep format.
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