Beginning balances of FRS Companys accounts as of January 1, 2018 as given below:

Beg Balance

Account Title

Debit

Credit

Cash

365,800

Accounts Receivable

42,500

Supplies

13,000

Prepaid Insurance

0

Inventory

18,000

Equipment

46,000

Accumulated Depreciation-Equipment

20,000

Accounts Payable

82,500

Salary Payable

16,000

Unearned Sales Revenue

25,000

Capital

341,800

Withdrawals

0

Sales Revenue

Sales Returns& Allowances

Sales Discounts

Cost of Goods Sold

Insurance Expense

Depreciation Expense-Equipment

Supplies Expense

Salary Expense

Total

485,300

485,300

During January 2018, FRS Company completed the following transactions:

Jan 1: Paid 6 months insurance in advance for $10,800.

Jan 2: Purchased 400 units of inventory for 32,000$ from Great Company, on terms, 3/10, n/eom. And paid $2,000 of commissions and freight charges for the purchase from Great Company.

Jan 4: Purchased 150 units of inventory from Deluxe Company on account with terms 2/5, n/30. Total invoice is $13,500.

Jan 5: Paid accrued salary of the December 2016, $16,000.

Jan 13: Paid to Great Company.

Jan 15: Sold 600 units of goods to Shine Company for $90,000 ($150 each) on account with terms 2/10, n/30.

Jan 17: Received 50 units of goods back from Shine Company (Returned goods are from $85 of cost each).

Jan 20: Received payment from Shine Company, settling the amount due in full.

Jan 23: Sold 40 units on account, $6,000 ($150 each) to Bridget Company.

Jan 27: Purchased supplies for cash of $13,000.

On January 31, 2018 FRS Company completed following adjusting entries:

Expiration of prepaid insurance for one month

Depreciation of equipment for the month, $8,500

Supplies used, $12,000

Unearned sales revenue still unearned, $12,000.

Accrued salary of the January 2017 is $16,000 which will be paid on the 5th of February.

Requirements:

Journalize and post the January transactions. (Open T-accounts for each of the accounts given in trial balance, do not forget to write beginning balances)

Prepare FIFO schedule to calculate the Cost of Goods Sold (COGS) on the Jan 15th, and 23th. (Beginning inventory as of January 1 include 225 units $80 each which totals $18,000 as given)

Prepare unadjusted trial balance as of January 31, 2018.

Journalize and post the adjusting entries.

Prepare adjusted trial balance as of January 31, 2018.