Comprehensive Case: Chapters 1-3 Record and post transactions; prepare trial balance and financial statements. (SO 3, 4, 5) Soft ware Advisors Limited was organized on January 1, 2015. The company plans to use the following chart of accounts: 100 Cash 4500 Retained Earnings 0 110 0 Accounts Receivable 5000 Service Revenue 120 0 Supplies 7000 Advertising Expense 130 0 Prepaid Insurance 7100 Salaries Expense 200 0 Equipment 7200 Interest Expense 300 0 Accounts Payable 7300 Office Expense 310 0 Bank Loan Payable 7400 Rent Expense 400 Common Shares 9000 Income Tax Expense 0 The company had the following transactions in the month of January: January Issued 1,000 common shares for $15 each. 2 3 Borrowed $50,000 from the bank on a long-term loan. 4 Finalized the lease for office space and paid the first month's rent of $3,000. 5 Purchased $40,000 of equipment for $20,000 cash and $20,000 on account. 10 Paid for an advertisement in a local paper, $500. 11 Purchased supplies on account, $1,000. 13 Paid for several advertising spots on the local radio station, $3,000. 15 Paid employees $7,500 for the first two weeks of work. 17 Summarized and recorded the billings to clients for the first two weeks of January. Billings totalled $15,000. These amounts are due by the 10th of the next month. 20 Paid $1,000 for the current month's office expenses. 24 Received $10,000 from clients in partial settlement of accounts billed on the 17th. 30 Paid annual insurance policy with coverage up to February 1, 2016, for $6,000. 30 Summarized and recorded the billings to clients for the last two weeks of January. Billings totalled $18,000. These amounts are due by the 28th of the next month. 31 Paid employees $7,500 for the last two weeks of work. 31 Made a payment to the bank of $300 for interest on the bank loan and $700 to pay on the amount owing for the bank loan. 31 Paid Canada Revenue Agency $1,200 for an income tax instalment. Instructions (a) (b) (c) (d) Journalize the January transactions. Set up T accounts and post the journal entries prepared in (a). Prepare a trial balance at January 31. Prepare an income statement, statement of changes in equity, and statement of financial position for January. Comprehensive Case: Chapters 13 Record and pmt tra nsactbns, prepare trial bahnce and nancial statements. Soft waretAsdeigofs |5_]imited was organized on January 1, 2015. The company plans to use the folowing chart of accounts: 1000 Cash 4500 Retained Earnings 1100 Accounts Receivable 5000 Service Revenue 1200 Suppies 7000 Adverts rig Expense 1300 Prepaid Insurance 7100 Salaries Expense 2000 Equipment 7200 Interest Expense 3000 Accounts Payable 7300 Ofce Expense 3100 Bank Loan Payable 7400 Rent Expense 4000 Common Shares 9000 Income Tax Expere The company had the tolowing transactions in the month of January: January 2 Issued 1,000 common shares for $15 each. 3 Borrowed $50,000 from the bank on a longterm ban. 4 Finalized the lease for otce space and paid the rst month's rent of$3,000. 5 Purchased $40,000 of equ'pment for $20,000 cash and $20,000 on account. 10 Paid for an advertisement in a local paper, $500. 11 Purc hased supplies on account, $1 ,000. 13 Paid for severaladvertising spots on the local radio station, $3,000. 15 Paid employees $7,500 for the rst two wee ks of work. 17 Summarized and recorded the billngs to cients for the rst two weeks of January. Bill'ngs totalled $15,000. These amounts are due by the 10th of the next month. 20 Paid $1,000 for the current month's otfce expenses. 24 Received $10,000 from clients it part'al settlement of accounts biled on the 17th. 30 Paid annual insurance policy wih coverage up to February 1, 2016, for $6,000. 30 Summarized and recorded the billngs to cients for the last two weeks of January. Bilings totaled $18,000. These amounts are due by the 28th otthe next month. 31 Paid empbyees $7,500 for the last two weeks of work. 31 Made a payment to the bank of $300 for 'nterest on the bank ban and $700 to pay on the amount owing for the bank loan. 31 Paid Canada Revenue Agency $1,200 for an income tax instalment. Instructions {a} Journalize the January transactions. {bl Set up T accounts and post the journal entries prepared i1 (a). {1:} Prepare a trial balance at January 31. {ii} Prepare an income statement, statement of changes it equity, and statement of nancial position for January