C5-1 (Algo) Recording Transactions and Adjustments, Reconeiling kems, and Preparing Financial On January 1, Pulse Recording Studio (PRS) had the following account balances. The following transactions occurred during January. a. Received $2.370 cash on 1/1 from customers on account for recording services completed in December: b. Wrote checks on 1/2 totaling \$4.370 for amounts owed on account at the end of December. c. Purchased and received supplies on account on 1/3. at a total cost of $200 d. Completed $3,900 of recording sessions on 1/4 that customers had paid for in advance in December e. Recelved $4,700 cash on 1.5 from customers for recording sessions started and completed in January: 8. Wrote a check on 1/6 for $4,040 for an amount owed on account. 9. Comverted 51.030 of cash equivalents into cash on 17. h. On V15. completed EFTs for $1.390 tor employees' salarles and wages for the first half of January. 1. Recelved 52,970 cash on 1/31 from customers for recording sessions to start in February Required: 1. Prepare joumal entries for the January transactions. Review the 'General Ledger and the unadjusted 'Trial Balancel Tabs to see the effect of the transactions on the account balances. 2. Prepare joumal entries for items (i)-(n) from the bank reconcillation, The bank deducted $470 for an NSF check from a custoner deposited on January 5 . K. The check written January 6 has not cleared the bank but the January 2 payment has cleared. L. The cash recelved and deposited on January 31 was not processed by the bank until February 1 . m. The bank added $4 cash to the account for interest eamed in January. n. The bank deductedi $4 for service charges 3. Prepare adjusting journal entries on 1/31 in 'General Journal' Tab. (these are shown as items 15 to 21). o. Depreciation for the month is $280. p. Salaries and wages totaling $1.300 have not yet been recorded for January 16 to 31 . 9. Prepaid Rent will be fully used up by March 31. r. Supplies on hand at January 31 were $200. 5. Received $200 invoice for January electricity charged on account to be paid in February but is not yet recorded. t. Interest on the promissory note of $26 for January has not yet been recorded or paid. u. Income tax of $2,000 on January income has not yet been recorded or paid. 4. Review the adjusted 'Trial Balance' as of January 31 . 5. Prepare an income statement for the period ended January 31 in the 'income Statement' Tab. 6. Prepare a bank reconciliation in the 'Bank Reconcillation' Tab. 7. Prepare a classified balance sheet as of January 31 in the 'Balance Sheet' Tab. 8. Using the information from the requirements above, complete the 'Analysis' tab. General Journal tab - Prepare the joumal entries to record the transactions that occurred from January 1-31. Review the accounts as shown in the General Ledger and Trial Balance tabs. Then prepare the necessary adjusting entries at January 31 to correctly report net income for the period. General Ledger tab - Each Journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted and adjusted balances in the General Ledger. Trial Balance tab - You may view either the unadjusted and adjusted trial balance by choosing from the drop-down. Income Statement tab - Use the drop-down to select the accounts properly included on the income statement. The unadjusted and adjusted balances will appear for each account based on your selection. Statement of Retained Earnings tab - prepare the bank reconcilation for the year ended January 31. Balance Sheet tab - Use the drop-down to select the accounts to properly included on the balance sheet. The unadjusted and adjusted balances will appear for each account, based on your selection. Analysis tab - Using the information from the requirements above, complete the 'Analysis' tab