Analyze the following transactions using T accounts and prepare an unadjusted trial balance. using information in the adjustments information preparing adjusting entries and calculate an adjusted trial balance. Use the calculated amounts in your adjusted trial balance to create a balance sheet and income statement for transactions in January.

Mikes Mobile Detailing Service had the following transactions:

January 2- Mike Smith contributes $5000 cash and a $1000 pressure washer in exchange for stock.

January 5- Mike purchases $200 worth of soap and other supplies

January 6- Mike lands a contract for washing a business beginning later in January. He will earn $500 each month and receives 4 months payment up front.

January 9- Mike obtains insurance for the year for his truck. Policy covers 12 months and required the entire annual premium of $1200 to be paid immediately.

January 31- Mikes hires an employee and agrees to pay him $20 per day, paid every friday.

Adjustment Information-

1. Assume monthly depreciation in his equipment will be $20

2. Mikes employee worked one day during January and his payday isnt until Feb 5th

3. Mikes performed one month of service for the customer who signed the monthy service contract and prepaid his fee

4. Physical count of supplies shows Mike only has $10 worth left on Jan 31.

5. Insurance was in effect for one full month