Assignment #2 Squeaker Corporation is a publicly traded Canadian Corporation. On December 31, 2022, the company's year end, the Squeaker Corporation's trial balance was as follows. The company prepares its adjusting entries monthly. Squeaker Corporation Trial Balance December 31, 2022 Debit Credit Cash Accounts receivable $ 22,000 19,500 Allowance for doubtful accounts $ 1,500 Supplies Inventory 2,000 Equipment 25,000 Accumulated depreciation-equipment Accounts payable Salaries payable Unearned revenue Common shares, 21,000 shares outstanding Retained earnings 2,500 7,500 1,250 2,100 21,000 32,650 $68,500 $68,500 During January, the following transactions took place: Jan 4 Paid employees $2,250 for salaries (ignore any CRA requirements) of which $1,000 was for January earnings and $1,250 for December earnings. 6 Received $3,000 cash on account. 11 Received $7,800 cash for services performed in January. 17 Purchased supplies inventory on account, $750. 18 It was determined that a customer, Ryster Ltd., has gone bankrupt and therefore we will not receive the $640 they owe us. 21 Paid $6,500 on account. 24 Paid January, February and March rent, $9,000 ($3,000 per month). 25 Paid salaries, $3,150-all for January carnings (again ignore CRA requirements). 26 Received $1,900 from customers for services to be provided in the future. 27 Provided services on account, $6,000. 28 Declared a cash dividend to the common shareholders, $2,100, to be paid February 20 29 Issued 5,000 preferred shares for $20 cash per share. 30 Provided services on account, $900. Page 2 of 3 Additional data for the January month end: Supplies inventory on hand total $1,000. 2. Accrued salaries payable are $900. 3. Accrued service revenue (services provided but not yet invoiced) totaled $5,000. 4. Depreciation is calculated to be $208 for the month. 5. Unearned revenue of $800 has not yet been earned (i.e. the balance in unearned revenue should be $800). 6. An analysis of accounts receivable determined that 10% of the outstanding accounts receivable (after adjusting for any amounts noted previously) was considered doubtful and an allowance should be set up. Required 1: Prepare T accounts, and enter the opening balances at January 1. Required 2: Prepare journal entries for the January transaction entries. (i.e. January 4 to 30 above). Please date and number your entries. No journal entry descriptions are required. Required 3: Post the entries prepared in Required 2 to the T-accounts prepared in Required 1. Please number each posting with the JE number. Required 4: Prepare journal entries for the January adjustments (i.e. Additional data #1 to #6 above). No journal entry descriptions are required. Required 5: Post the adjusting journal entries prepared in Required 4 to the T-accounts. Please number each posting with a JE number. Required 6: Prepare a trial balance at January 31, 2023. This trial balance, similar to the one above, should balance (i.e. the debit column should equal the credit column). Required 7: Prepare an income statement, statement of changes in equity, and statement of financial position for the month in proper form.