DIRECTIONS:

A) Prepare journal entries for the following items

B) Post the journal entries into t-accounts or three-column form of account (starting balances would be those amounts per the post-closing trial balance)

C) Prepare an Income Statement for the month ended January 31,2017

D) Prepare a Statement of Retained Earnings for the month ended January 31, 2017

E) Prepare a Balance Sheet for January 31, 2017

The following transactions occurred during 2017 (the company uses a perpetual inventory system with FIFO):

1) Jan 4 Stockholders invested an additional $10,000 cash in the business in exchange for common stock

2) Jan 4 Purchased 20 turkeys at $50 each on account from Turkey Farms.

3) Jan 4 Established a $200 petty change fund

4) Jan 5 Sold 6 turkeys for $200 each to Mr. Pilgrim, terms 2/10, n/30.

5) Jan 6 Sold 12 turkeys at $200 each for cash

6) Jan 8 Paid wages of $240

7) Jan 9 Mr. Pilgrim returned one turkey because they originally ordered only 5.

8) Jan 12 Purchased equipment on account for $2,000

9) Jan 14 Received payment in full from Mr. Pilgrim

10) Jan 15 Purchased 10 turkeys at $52 each on account from Thanksgiving Industries, terms 1/10, n/30.

11) Jan 15 Paid utility bill of $120

12) Jan 16 Returned 2 turkeys to Thanksgiving Industries because they were defective.

13) Jan 17 Sold 8 turkeys for $245 each for cash

14) Jan 18 Paid tax bill from 2016.

15) Jan 18 Performed the service of turkey grooming ($800 worth); we received the cash in 2016

16) Jan 19 Paid Accounts Payable in full from 2016

17) Jan 20 Received $2,200 cash from customers paying on their accounts

18) Jan 21 Received a bill from the local radio station for advertising in the amount of $400

19) Jan 22 Purchased 20 turkeys for $55 each on account from Stuffing & Cranberry Company; terms 2/5, n/30

20) Jan 23 Sold 10 turkeys to Turkey Leg Corporation for $260 each on account; terms 3/10, n/30

21) Jan 25 Paid freight costs from Stuffing & Cranberry Company of $10.

22) Jan 26 Received payment in full from Turkey Leg Corporation

23) Jan 27 Sold 10 turkeys to customers on credit for $260 each.

24) Jan 28 Paid Stuffing & Cranberry Company for the

purchase on Jan 22

25) Jan 29 Petty cash was replenished and had the following receipts: gas receipt for $20, postage stamps for $39, Office Depot receipt for $16, miscellaneous receipt for $30, travel receipts for $40

26) Jan 30 Performed a physical inventory count and counted

only 1 turkey on hand.

27) Jan 30 Bank statement arrives today and there is a $20 bank service charge as well as a $120 NSF check.

28) Jan 31 One months prepaid insurance needs to be expensed for January ($1,200 is for the whole year)

29) Jan 31 Depreciate one months worth of the building and equipment (Using straight line method; building

has a useful life of 20 years, equipment has a useful life of 5 years and no salvage value)

30) Jan 31 The estimated bad debt expense under the percentage of sales basis is $120.

31) Jan 31 Paid dividends of $500