Dec 31, 2021, the end of its most recent fiscal year, Company's post-closing trial balance was as follows:

Debit Credit

Cash $20,925

Accounts receivable 3,750

Supplies 6,975

Accounts payable $1,250

Unearned service revenue 600

Common stock 6,400

Retained earnings 23,400

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Total $31,650 $31,650

Company conducted the following transactions during Jan 2022, and adjusts its accounts monthly.

Jan 01 Purchased equipment, paying $6,180 cash and signing a 2-year note payable for $19,720. The equipment has a 5-year useful life. The note has a 8% interest rate, with interest payable on the first day of each following month.

Jan 02 Issued 20,400 shares of common stock for $51,000 cash.

Jan 03 Paid $4,800 cash for a 12-month insurance policy effective Jan 01.

Jan 10 Collected $1,950 cash on account from The Lightman Group. This client was billed in December when Company performed the service.

Jan 14 Paid $1,100 cash for a utility bill. This was related to December utilities that were accrued at the end of December.

Jan 20 Performed services worth $23,050 on account and billed customers.

Adjustment data:

1. Adjustment of prepaid insurance.

2. Equipment depreciation, $431 per month.

3. Accrual of interest on note payable.

4. Estimated utilities expense for January, $1,800 (invoice will be received next month).

5. Income tax for January, $4,650 will be paid next month

1. Journalize the January transactions (including adjusting entries).

2. Enter the opening balances in the ledger accounts (Use T-accounts).

3. Post to the ledger accounts.

4. Prepare a trial balance at Jan 31, 2022.

5. Journalize and post adjusting entries for the month ending Jan 31, 2022.

6 Prepare an adjusted trial balance.

7. Prepare an income statement and a retained earnings statement for January and a balance sheet at Jan 31, 2022. (Net income $15,638, Total assets $123,489)