Assume that you are the chief accountant for Wells' Consulting Services. The chart of accounts for Wells' Consulting Services has been expanded to include a few new accounts. Follow the instructions to complete the accounting records for the month of January.

Create a General Journal, General Ledger, Worksheet, Income Statement, Statement of owners Equity, Post Close Trial Balance and Balance sheet (not in order).

Wells' Consulting Services Chart of Accounts Assets 101 Cash 111 Accounts Receivable 121 Supplies 134 Prepaid Insurance 137 Prepaid Rent 141 Equipment 142 Accumulated Depreciation - Equipment Revenue 401 Fees Income Expenses 511 Salaries Expense 514 Utilities Expense 517 Supplies Expense 520 Rent Expense 523 Depreciation Expense - Equipment 526 Advertising Expense 529 Maintenance Expense 532 Telephone Expense 535 Insurance Expense Liabilities 202 Accounts Payable Owner's Equity 301 Carolyn Wells, Capital 302 Carolyn Wells, Drawing 309 Income Summary Wells' Consulting Services Postclosing Trial Balance December 31, 2016 ACCOUNT NAME CREDIT Cash Accounts Receivable Supplies Prepaid Rent Equipment Accumulated Depreciation Equipment Accounts Payable Carolyn Wells, Capital Totals DEBIT 111 35 000 500 000 1 000 00 4 000 00 11 000 00 183 00 3 50 000 128 66 700 132 350 00 132 35 000 Wells' Consulting Services Income Statement Month Ended December 31, 2016 47 0 0 000 Revenue Fees Income Expenses Salaries Expense Utilities Expense Supplies Expense Rent Expense Depreciation Expense-Equipment Total Expenses Net Income for the Month 8 000 00 650 00 solo oo 40 00 00 183 00 13 3 3 300 33 6 6 700 Wells' Consulting Services Statement of Owner's Equity Month Ended December 31, 2016 10000000 Carolyn Wells, Capital, December 1, 2016 Net Income for December Less Withdrawals for December Increase in Capital Carolyn Wells, Capital, December 31, 2016 33 667 00 5000 00 28 6 67 00 128 66 700 Wells' Consulting Services Balance Sheet December 31, 2016 Assets Cash Accounts Receivable Supplies Prepaid Rent Equipment Less Accumulated Depreciation Total Assets 111 350 00 500 000 100 000 400000 11 000 00 1 8 3 00 10 8 17.00 132 16 700 3 50 000 Liabilities and Owner's Equity Liabilities Accounts Payable Owner's Equity Carolyn Wells, Capital Total Liabilities and Owner's Equity 128 66 700 132 1 6 7 00 DATE TRANSACTIONS Jan. 2 2 7 12 12 13 14 15 20 20 20 21 22 Purchased supplies for $6,000; issued Check 1015. Purchased a one-year insurance policy for $7,200; issued Check 1016. Sold services for $20,000 in cash and $4,000 on credit during the first week of January. Collected a total of $4,000 on account from credit customers during the first week of January. Issued Check 1017 for $3,200 to pay for special promotional advertising to new businesses on the local radio station during the month. Collected a total of $3,500 on account from credit customers during the second week of January. Returned supplies that were damaged for a cash refund of $650. Sold services for $20,700 in cash and $2,300 on credit during the second week of January. Purchased supplies for $4,600 from White's, Inc., received Invoice 2384 payable in 30 days. Sold services for $12,500 in cash and $3,350 on credit during the third week of January. Collected a total of $4,500 on account from credit customers during the third week of January. Issued Check 1018 for $6,075 to pay for maintenance work on the office equipment. Issued Check 1019 for $3,200 to pay for special promotional advertising to new businesses in the local newspaper. 23 26 27 28 29 31 Received the monthly telephone bill for $925 and paid it with Check 1020. Collected a total of $1,600 on account from credit customers during the fourth week of January. Issued Check 1021 for $3,000 to Office Plus, as payment on account for Invoice 2223. Sent Check 1022 for $2,350 in payment of the monthly bill for utilities. Sold services for $19,000 in cash and $2,750 on credit during the fourth week of January. Issued Checks 1023-1027 for $25,750 to pay the monthly salaries of the regular employees and three part-time workers. Issued Check 1028 for $15,000 for personal use. Issued Check 1029 for $4,150 to pay for maintenance services for the month. Purchased additional equipment for $15,000 from Contemporary Equipment Company; issued Check 1030 for $10,000 and bought the rest on credit. The equipment has a five-year life and no salvage value. Sold services for $5,600 in cash and $1,580 on credit on January 31. 31 31 31 31 Wells' Consulting Services Chart of Accounts Assets 101 Cash 111 Accounts Receivable 121 Supplies 134 Prepaid Insurance 137 Prepaid Rent 141 Equipment 142 Accumulated Depreciation - Equipment Revenue 401 Fees Income Expenses 511 Salaries Expense 514 Utilities Expense 517 Supplies Expense 520 Rent Expense 523 Depreciation Expense - Equipment 526 Advertising Expense 529 Maintenance Expense 532 Telephone Expense 535 Insurance Expense Liabilities 202 Accounts Payable Owner's Equity 301 Carolyn Wells, Capital 302 Carolyn Wells, Drawing 309 Income Summary Wells' Consulting Services Postclosing Trial Balance December 31, 2016 ACCOUNT NAME CREDIT Cash Accounts Receivable Supplies Prepaid Rent Equipment Accumulated Depreciation Equipment Accounts Payable Carolyn Wells, Capital Totals DEBIT 111 35 000 500 000 1 000 00 4 000 00 11 000 00 183 00 3 50 000 128 66 700 132 350 00 132 35 000 Wells' Consulting Services Income Statement Month Ended December 31, 2016 47 0 0 000 Revenue Fees Income Expenses Salaries Expense Utilities Expense Supplies Expense Rent Expense Depreciation Expense-Equipment Total Expenses Net Income for the Month 8 000 00 650 00 solo oo 40 00 00 183 00 13 3 3 300 33 6 6 700 Wells' Consulting Services Statement of Owner's Equity Month Ended December 31, 2016 10000000 Carolyn Wells, Capital, December 1, 2016 Net Income for December Less Withdrawals for December Increase in Capital Carolyn Wells, Capital, December 31, 2016 33 667 00 5000 00 28 6 67 00 128 66 700 Wells' Consulting Services Balance Sheet December 31, 2016 Assets Cash Accounts Receivable Supplies Prepaid Rent Equipment Less Accumulated Depreciation Total Assets 111 350 00 500 000 100 000 400000 11 000 00 1 8 3 00 10 8 17.00 132 16 700 3 50 000 Liabilities and Owner's Equity Liabilities Accounts Payable Owner's Equity Carolyn Wells, Capital Total Liabilities and Owner's Equity 128 66 700 132 1 6 7 00 DATE TRANSACTIONS Jan. 2 2 7 12 12 13 14 15 20 20 20 21 22 Purchased supplies for $6,000; issued Check 1015. Purchased a one-year insurance policy for $7,200; issued Check 1016. Sold services for $20,000 in cash and $4,000 on credit during the first week of January. Collected a total of $4,000 on account from credit customers during the first week of January. Issued Check 1017 for $3,200 to pay for special promotional advertising to new businesses on the local radio station during the month. Collected a total of $3,500 on account from credit customers during the second week of January. Returned supplies that were damaged for a cash refund of $650. Sold services for $20,700 in cash and $2,300 on credit during the second week of January. Purchased supplies for $4,600 from White's, Inc., received Invoice 2384 payable in 30 days. Sold services for $12,500 in cash and $3,350 on credit during the third week of January. Collected a total of $4,500 on account from credit customers during the third week of January. Issued Check 1018 for $6,075 to pay for maintenance work on the office equipment. Issued Check 1019 for $3,200 to pay for special promotional advertising to new businesses in the local newspaper. 23 26 27 28 29 31 Received the monthly telephone bill for $925 and paid it with Check 1020. Collected a total of $1,600 on account from credit customers during the fourth week of January. Issued Check 1021 for $3,000 to Office Plus, as payment on account for Invoice 2223. Sent Check 1022 for $2,350 in payment of the monthly bill for utilities. Sold services for $19,000 in cash and $2,750 on credit during the fourth week of January. Issued Checks 1023-1027 for $25,750 to pay the monthly salaries of the regular employees and three part-time workers. Issued Check 1028 for $15,000 for personal use. Issued Check 1029 for $4,150 to pay for maintenance services for the month. Purchased additional equipment for $15,000 from Contemporary Equipment Company; issued Check 1030 for $10,000 and bought the rest on credit. The equipment has a five-year life and no salvage value. Sold services for $5,600 in cash and $1,580 on credit on January 31. 31 31 31 31