CHAPTER TWO/ The Accounting Process 71 CP 213 The following journal entries were prepared for Elgert Corporation for its first month of operation, January 2017. Debit Credit Jan. 1 Cash 10,000 Share Capital 10,000 To record the shares issued. 5 Rent Expense 200 Cash 200 To record the payment of rent for the month. 9 Unused Supplies 4,000 Cash 4,000 To record the purchase of supplies. 11 Cash 1,300 Service Revenue 1,300 To record service revenue earned. 28 Truck Operating Expense 450 Accounts Payable 450 To record truck repairs. 30 Salaries Expense 1,800 Cash 1,800 To record payment of salaries for the month. 31 Accounts Receivable 1,600 Service Revenue 1,600 To record service revenue earned during the month. 31 Supplies Expense 200 Unused Supplies 200 To record supplies used during the month. 31 Dividends 50 Cash 50 Required: 1. Prepare necessary general ledger T-accounts and post the transactions. 2. Prepare a trial balance at January 31, 2017. 3. Prepare an income statement and statement of changes in equity for the month ended January 31, 2017 and a statement of financial position at January 31, 2017