Bob and Frank Smith began a management consulting business on January 1, 2022, called Smith Consulting, Inc. The following transactions occurred in the month of January 2022:

Jan 1Smith Brothers Consulting, Inc., sold 1,000 shares of its common stock for $20,000 cash.

1 Purchased office equipment for $5,000, paying $1,000 cash and signing a note payable for the balance.

5Purchased office supplies on account from AlliedCompany for $700.

10Performed consulting services and billed ABCCompany $14,000 on account.

11Provided consulting services for Lotus Corporation receiving cash of $4,000.

15Paid for the office supplies purchased from AlliedCompany on the 5th.

15Provided consulting services to Eloquent Design, Inc., receiving cash of $2,000.

16Paid wages for the first half of the month totaling $1,000.

19Purchased computer supplies on account from DavisCompany, $400.

20Purchased office supplies for cash totaling $400.

20Received payment from ABC Company for payment of the October 10th invoice.

28Provided services on account to Jones Company for $1,600.

28Paid $300 for electricity used during October.

28Received telephone bill for $250 for telephone service for the month of January.

28Paid Davis Company for the invoice of October 19.

31Paid wages for the second half of October, $1,500.

31Received a bill from Copies R Us for Januarys copy services for $100.

31Paid cash dividends of $1,500.

Required:

a. Journalize the transactions for the month of January in the general journal.

b. Open the necessary accounts in the general ledger and post the January transactions to the appropriate accounts.

c. Prepare a trial balance at January 31, 2022.