"Beginning Transactions" will provide the Balance Sheet for 2019 and the Transactions for January 2020.

a. record the transactions provided in a journal

b. record the required entries in T-accounts and prepare a trial balance.

c. prepare an Income Statement, Statement of Equity and a Balance Sheet as of January 31, 2020 and answer the inventory question- How many units and at what cost are in inventory to start February?

Transactions for January of 2020 Balance Sheet for end of 2019 Assets Cash Accounts Receivable (net of allowance of 7200) Inventory Prepaid Insurance Supplies Total Current Assets 77,250 237,884 45,500 (1000 units at $45.50 each) 1,600 1,625 363,859 Property, Plant and Equipment, Net Land 177,500 32,000 Total Assets 573,359 1/3/20 Paid interest payable plus $3,000 toward long term debt 1/2/20 Paid salaries payable 1/3/20 Purchased inventory (500 units at $46) on credit 1/4/20 Paid shipping on inventory of $250 1/6/20 Purchased supplies on credit for $850 1/9/20 Received $2,500 from customers for products to deliver in March 1/10/20 Sold 600 units on credit with a sales price of $105 (assume perpetual LIFO) 1/15/20 Purchased inventory on account (700 units at $47) 1/20/20 Paid $41,600 on accounts payable 1/21/20 Collected $121,350 in cash from customers in payment for earlier sales 1/22/20 Wrote off accounts receivable for $815 1/25/20 Sold 200 units on credit with a sales price of $105 (still perpetual LIFO) 1/26/20 Paid wages to employees for work done in January $31,000 1/26/20 Received utility bill for $7,200 for utilities used in January that will be paid in February 1/31/20 Delivered 100 units of product to customers that they paid 10,000 for in 2019 (unearned revenue) 1/31/20 Counted supplies and found $1,240 remaining 1/31/20 Employees worked and earned $4,700 in January that will not be paid until February 1/31/20 Interest at 12% per year on the long term debt (new balance) has not been paid 1/31/20 The prepaid insurance will last 4 months into 2020 before a new policy will be required 1/31/20 The allowance for bad debts is estimated at 4% of total accounts receivable 1/31/20 A count of inventory showed that 50 units were damaged such that they are worthless and will be thrown away Liabilities Accounts Payable Unearned Revenue Interest Payable Salaries Payable Total Current Liabilities 94,552 45,200 2,100 6,600 148,452 Long Term Debt 246,100 Total Liabilities 394,552 Capital Stock Retained Earnings 100,000 78,807 Total Liabilities and Stockholders Equity 573,359