Company begins operations on January 1 20xx The company experiences the following transactions over the course of its first month of operations:

1 1/1/20xx Investor invests $ 174000 in the company

2 1/2/20xx Purchases $ 82500 of investments in equity and fixed income securities designated as trading securities

3 1/2/20xx Pays $4,950 to landlord for office/warehouse ,$4,109 represents a refundable deposit and $842 represents first months rent

4 1/3/20xx Purchased office equipment for $ 9900

5 1/3/20xx Received $ 5940 for 1 year subscription of monthly newsletter

6 1/10/20xx Purchased and received 825 books at a cost of $25 per book. With payment due in 30 days. No cash has changed hands. These books are intended for resale.

7 1/10/20xx Spent $ 330 on newspaper and trade magazine advertising for the month.

8 1/15/20xx Company borrows $ 17000 for 2-years

9 1/15/20xx Ships order to customer consisting of 50 books at $42 per book, with payment due in 30 days. No cash has changed hands..

10 1/15/20xx Sells 165 books at $42 per book, for cash at an investment conference.

11 1/30/20xx Hires a part-time clerk through an agency. The company pays the agency $17 an hour. The worker worked 10 hours during January. No cash will be paid until February."

12 1/31/20xx Mailed out first months news letter to customers

13,14 1/31/20xx Review of investment portfolio shows that $165.00 of interest income was earned and the market value of the portfolio increased by $3300.00.

Further Assumptions (Adjusting Journal Entries):

15 The office equipment is assumed to have an overall productive life of 24 months

16 The annual interest rate on the 2-year bank loan is 3.30%

17 The Marginal Corporate Tax rate is 35.00% Based on these transactions and the supplemental information: 1) Journalize all transactions and adjusting journal entries for the month of October 2) Post each journal entry to the general ledger for the month of October 3) Construct the Income Statement for the month ending 1/31/20xx 4) Construct the Statement of Retained Earnings for the month ending 1/31/20xx 5) Construct the Balance Sheet for the month ending 1/31/20xx 6) Construct the Statement of Cash Flow for the month ending 1/31/20xx.