Ajax Inc. is a company that specializes in cleaning services for residential households. Shown below are Ajax's balance sheet as of December 31, 2020 and its income statement for 2020. $19,600 19,600 Assets Current assets: Cash Accounts Receivable Supplies Long-term assets: Equipment Accumulated Depreciation Total Assets Ajax Inc. Balance Sheet December 31, 2020 Liabilities Salaries Payable $53,400 Total liabilities 11,000 1,200 Stockholders' Equity Common Stock 23,000 Retained Earnings (10,000) Total stockholders' equity $78,600 Total Liabilities and Stockholders' Equity 31,000 28.000 59.000 $78,600 Ajax Inc. Income Statement For the Year Ended December 31, 2020 Revenues: Service Revenue Expenses: Salaries Expense Repairs and Maintenance Expense Depreciation Expense Supplies Expense Total expenses Net Income $140,000 100,000 13,000 5,000 5.000 123.000 S17.000 Below is a summary of Ajax's transactions for January 2021: 1. January 1 Collect on accounts receivable, $6,500. 2. January 2 Purchase supplies for $1,000 cash. 3. January 3 Pay salaries of $19.600 from 2020 (prior year). 4. January 15 Pay repairs and maintenance expenses, $2,500. 5. January 25 Purchase equipment for $7,500 cash. 6. January 30 Provide services to customers, $28,000, of which $8,000 is on account. Additional information below is available for the month-end adjusting entries. Accrued salaries for January amounted to $18,000 and will be paid in February. Depreciation for equipment is $1,000. Office supplies remaining on hand on January 31 equal $1,500. Required: 1. Prepare journal entries for each listed transaction and month-end adjusting entries. a. Record the collection of accounts receivable. b. Record the purchase of supplies. c. Record the payment for last year's salaries. d. Record the payment for repairs and maintenance expenses. e. Record the purchase of equipment. f. Record the services provided to customers. g. Record the accrual of January salaries. h. Record depreciation. i. Record the usage of supplies (Hint: use the Supplies T-account in part 2 to help you). 2. Use T-accounts to calculate ending balances for the accounts shown below (post beginning balances first, then post amounts from journal entries in part 1, and finally calculate ending balances). Cash Accounts receivable Supplies Equipment Accumulated depreciation Salaries payable H 3. Prepare Ajax's income statement for the month ended January 31, 2021 (Hint: net income $5,800). 4. Prepare Ajax's balance sheet as of January 31, 2021 (Hint: total assets=$82,800)