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Assume that you are the chief accountant for Eli's Consulting Services. The chart of accounts for Eli's Consulting Services has been expanded to include a

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Assume that you are the chief accountant for Eli's Consulting Services. The chart of accounts for Eli's Consulting Services has been expanded to include a few new accounts. Follow the instructions to complete the accounting records for the month of January Eli's Consulting Services Chart of Accounts Assets Revenue 101 Cash 401 Fees Income 111 Accounts Receivable Expenses 121 Supplies 511 Salaries Expense 134 Prepaid Insurance 514 Utilities Expense 137 Prepaid Rent 517 Supplies Expense 141 Equipment 520 Rent Expense 142 Accumulated Depreciation-Equipment 523 Depreciation Expense-Equipment Liabilities 526 Advertising Expense 202 Accounts Payable 529 Maintenance Expense Owner's Equity 532 Telephone Expense 301 Trayton Eli, Capital 535 Insurance Expense 302 Trayton Eli, Drawing Account Balances as of January 1, 2020 are as follows: 101 Cash $ 111,350.00 111 Accounts Receivable $ 5,000.00 121 Supplies $ 1,000.00 137 Prepaid Rent $ 4,000.00 141 Equipment $ 11,000.00 142 Accumulated Depreciation $ 183.00 202 Accounts Payable $ 3,500.00 301 Trayton Eli, Capital $ 128,667.00 Requirement: 1. Journalize January's transactions.(20 points) 2. Setup T-Accounts, record beginning balances for your assets, liability and equity accounts. (5 points) 3. Post journalized entries to their prospective T-Accounts. (20 points) 4. Prepare a Trial Balance. (10 points) 5. Make the following adjustments: (10 points) (Prepare adjusting journal entries and update to their prospective T-Accounts) a. Compute and record the adjustment for supplies used during the month. An inventory taken on January 31 showed supplies of $5,200 on hand. b. Compute and record the adjustment for expired insurance for the month. c. Record the adjustment for one month of expired rent of $4,000. d. Record the adjustment for depreciation of $183 on the old equipment for the month. The first adjustment for depreciation for the new equipment will be recorded in February. DATE TRANSACTIONS Jan. 2 Purchased supplies for $7,000, wrote a check for this purchase. 2 Purchased a one-year insurance policy for $8,400, wrote a check for this. 7 Performed services for $20,000 in cash and $5,000 on credit during the first week of January. (Hint: compound journal entry) 12 Collected a total of $4.000 on account from credit customers during the first week of January 12 Issued a check for $3,600 to pay for special promotional advertising to new businesses on the local radio station during the month. 13 Collected a total of $4,500 on account from credit customers during the second week of January 14 Returned supplies that were damaged for a cash refund of $750. 15 Performed services for $20,700 in cash and $2,300 on credit during the second week of January. (Hint: compound journal entry) 20 Purchased supplies on account for $5,000 from White's, Inc. 20 Performed services for $12,500 in cash and $3,500 on credit during the third week of January. (Hint: compound journal entry) 20 Collected a total of $5,600 on account from credit customers during the third week of January 21 Issued a check for $7,065 to pay for maintenance work on the office equipment. 22 Issued a check for $3,600 to pay for special promotional advertising to new businesses in the local newspaper. 23 Received the monthly telephone bill and paid $1,025 with a check. 26 Collected a total of $1,600 on account from credit customers during the fourth week of January 27 Issued a check for $3,000 to Office Plus as payment on account. 28 Issued a check for $2,675 in payment of the monthly bill for utilities. 29 Performed services for $19,000 in cash and $2,750 on credit during the fourth week of January. (Hint: compound journal entry) 31 Issued checks for $32,800 to pay the monthly salaries of the regular employees and three part-time workers. 31 Issued a check for $12,000 for personal use. 31 Issued a check for $4,150 to pay for maintenance services for the month. 31 Purchased additional equipment for $15,000 from Contemporary Equipment Company issued a check for $10,000 as down payment and bought the rest on credit. The equipment has a five-year life and no salvage value, depreciation starts in February. (Hint: compound journal entry) 31 Performed services for $7,600 in cash and $1,620 on credit on January 31

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