Data has Fast Forwards General Ledger as of December 31, 2016 on the General Ledger page. The External Transactions page lists eight external transactions for the month of January 2017.

1. Book each of the external transactions to the appropriate T-account in the General Ledger. Use this to create a Trial Balance for January 31.
2. Fast Forward has eight adjustments that must be made to the Trial Balance in order to properly close the month.
   1. During the month Fast Forward uses $1,250 of its supplies on hand to work on contracts during the month of January.
   2. The lone employee also worked from January 26 through January 31 but wont be paid until February 7.
   3. The insurance for the month of January was prepaid in December.
   4. The contract signed on January 5 covered periods in February and March which wont all be earned in January.
   5. The payment received on January 22 covered periods of work done in December as well as January.
   6. There was another Consulting contract signed on December 26 for which they were paid but which covered work to be done in December through February.
   7. The contract signed on January 25 covers work to be done in February.
   8. The equipment needs to be depreciated for another month.

Make the adjustments listed above to create an Adjusted Trial Balance for January 31.

3. Use the adjusted Trial Balance to create and Income Statement and Statement of Retained Earnings as of January 31.

4.Go through the four steps to close the month of January by zeroing out revenue and expense accounts to the income summary and then zeroing out the income summary to the retained earnings account and finally, zeroing out the dividend account to the retained earnings account.

C D E F G I K Fast Forward Assets = Accounts Receivable Liabilities Accounts Payable + Equity Common Stock Retained Earnings Cash Dividends 6 January 5 Consulting Contract 4,000.00 4,000.00 Consulting January 6 - March 6 December 29 - January 9 -700.00 Salaries 7 January 9 Salary 8 January 15 Pay Credit Card 9 January 20 Rent Payment for Consulting 10 January 22 Contract signed in December - 700.00 -2,000.00 - 1,000.00 -2,000.00 -1,000.00 Rent 2,700.00 2,700.00 Consulting 11 January 23 Salary -700.00 -700.00 Salaries 12 January 25 Consulting Contract 2,500.00 2,500.00 Consulting January 12 - January 23 February 1 - February 28 January 1 - January 31 January 1 - January 31 13 January 31 Utility Bill -275.00 -275.00 Utilities 14 January 31 Dividend - 200.00 -200.00 Balance 1,825.00 2,500.00 -2,000.00 0.00 -200.00 6,525.00 General Ledger External Transactions F G H I K L M N A Assets Cash 4,275 Liabilities Accounts Payable Equity Common Stock 30,000 6,200 Unearned Counsulting Revenue 2,750 Dividends Accounts Receivable 1,800 Salaries Payable 210 Supplies 8,670 Retained Earnings 3,585 Prepaid Insurance 2,300 Equipment 26,000 Accumlated Depreciation Equipment 300 29 Total 42,745 9,160 33,585 General Ledger External Transactions C D E F G I K Fast Forward Assets = Accounts Receivable Liabilities Accounts Payable + Equity Common Stock Retained Earnings Cash Dividends 6 January 5 Consulting Contract 4,000.00 4,000.00 Consulting January 6 - March 6 December 29 - January 9 -700.00 Salaries 7 January 9 Salary 8 January 15 Pay Credit Card 9 January 20 Rent Payment for Consulting 10 January 22 Contract signed in December - 700.00 -2,000.00 - 1,000.00 -2,000.00 -1,000.00 Rent 2,700.00 2,700.00 Consulting 11 January 23 Salary -700.00 -700.00 Salaries 12 January 25 Consulting Contract 2,500.00 2,500.00 Consulting January 12 - January 23 February 1 - February 28 January 1 - January 31 January 1 - January 31 13 January 31 Utility Bill -275.00 -275.00 Utilities 14 January 31 Dividend - 200.00 -200.00 Balance 1,825.00 2,500.00 -2,000.00 0.00 -200.00 6,525.00 General Ledger External Transactions F G H I K L M N A Assets Cash 4,275 Liabilities Accounts Payable Equity Common Stock 30,000 6,200 Unearned Counsulting Revenue 2,750 Dividends Accounts Receivable 1,800 Salaries Payable 210 Supplies 8,670 Retained Earnings 3,585 Prepaid Insurance 2,300 Equipment 26,000 Accumlated Depreciation Equipment 300 29 Total 42,745 9,160 33,585 General Ledger External Transactions