1.Ms. Anna started her business ("Anna Car Repairing Shop") on January 1, 2018. During the first month of its operations, the business engaged in the following transactions:

Date

Transactions

Jan 1

Jan 2

Anna invested cash $100,000 as initial capital to start the business.

An amount of $36,000 was paid as advance rent for three months.

Jan 3

Paid $60,000 cash on the purchase of equipment costing $80,000. The remaining amount was recognized as note payable.

Jan 4

Purchased office supplies costing $17,600 on account.

Jan 13

Provided services to its customers and received $28,500 in cash.

Jan 13

Paid the accounts payable on the office supplies purchased on January 4.

Jan 14

Paid wages to its employees for the month of January, aggregating $19,100.

Jan 18

Provided $54,100 worth of services to its customers. They paid $32,900 and promised to pay the remaining amount in the next month.

Jan 23

Received $15,300 from customers for the services provided on January 18.

Jan 25

Received $4,000 as an advance payment from customers.

Jan 26

Purchased office supplies costing $5,200 on account.

Jan 28

Paid water bill of $19,000 for January

Jan 31

Paid $5,000 advertising expense.

Jan 31

Received electricity bill of $2,470 for January.

Jan 31

Received telephone bill of $1,494 for January.

Jan 31

Miscellaneous expenses paid during the month totaled $3,470.

Instructions:

a)Journalize the transactions with explanations (Ignore the reference numbers).

b)Post the transactions in the ledger account.

c) make Trial Balance for Jan 31, 2018.

d) make an Income Statement and a classified Balance for Jan 31, 2018 based on the information available in the trial balance.