Amos Faraday's consulting practice includes a great deal of systems consulting busi- 2. Faraday has begun selling accounting software. During January, the business completed these transactions: Jan. 2 Completed a consulting engagement and received cash of $7.200. Purchased accounting software inventory on account, $4,000. Paid employee salary: $1.400. 2 Prepaid three months' office rent. $1.500. 7 16 18 19 21 24 28 31 Required Sold accounting software on account. $1.100 (cost $7001. Consulted with a client for a fee of $900 on account. Paid on account. $2,000. Paid utilities, $300. Sold accounting software for cash. $600 (cost $4001. Recorded these adjusting entries: Accrued salary expense. 51.400. Accounted for expiration of prepaid rent. Depreciation of office furniture, $200. 1. Open the following selected T-accounts in the ledger: Cash: Accounts Receivable: Accounting Software Inventory; Prepaid Rent; Accumulated Depreciation: Accounts Payable; Salary Payable: Amos Faraday. Capital: Income Summary: Service Revenue: Sales Revenue: Cost of Goods Sold: Salary Expense: Rent Expense: Utilities Expense: and Depreciation Expense. 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 all closing entries, prove the equality of debits and credits in the ledger. 3. Prepare the January income statement of Amos Faraday: Consultant. Use the single-step format.