During the month of January 20-2, TJ's Specialty Shop engaged in the following transactions:

Jan. 1Sold merchandise on account to Anne Clark, $3,000, plus tax of $150. Sale No. 643.2Issued Check No. 818 to Nathen Co. in payment of January 1 balance of $800, less 2% discount.3Purchased merchandise on account from West Wholesalers, $1,500. Invoice No. 678, dated January 3, terms 2/15, n/30.4Purchased merchandise on account from Owen Enterprises, $2,000. Invoice No. 767, dated January 4, terms 2/10, n/30.4Issued Check No. 819 in payment of phone expense for the month of January, $180.8Sold merchandise for cash, $3,600, plus tax of $180.9Received payment from Lucy Greene in full settlement of account, $1,491.10Issued Check No. 820 to West Wholesalers in payment of January 1 balance of $1,200.12Sold merchandise on account to Martha Boyle, $1,000, plus tax of $50. Sale No. 644.12Received payment from Anne Clark on account, $2,100.12Issued Check No. 821 in payment of wages (Wages Expense) for the two-week period ending January 11, $1,100.13Issued Check No. 822 to Owen Enterprises in payment of January 4 purchase. Invoice No. 767, less 2% discount.13Martha Boyle returned merchandise for a credit, $800, plus sales tax of $40.17Returned merchandise to Evans Essentials for credit, $300.22Received payment from John Dempsey on account, $2,121.26Issued Check No. 823 in payment of wages (Wages Expense) for the two-week period ending January 25, $1,100.27Issued Check No. 824 to KC Power & Light (Utilities Expense) for the month of January, $630.27Sold merchandise on account to John Dempsey, $2,000, plus tax of $100. Sale No. 645.Late in January, TJ's agreed to sell the business to a competitor. To agree on a selling price, financial statements are needed as of January 31 and for the month of January 20-2. To prepare these financial statements, TJ's must perform the same procedures it normally does at year-end.At the end of January, the following adjustments (a)-(j) need to be made:

(a, b)Merchandise inventory as of January 31, $19,000.(c, d, e)Jones estimates that customers will be granted $500 in refunds of this month's sales in subsequent months, and the merchandise expected to be returned will have a cost of $360.(f)Unused supplies on hand, $115.(g)Unexpired insurance on January 31, $968.(h)Depreciation expense on the building for the month, $67.(i)Depreciation expense on the store equipment for the month, $38.(j)Wages earned but not paid as of January 31, $330.Required:

1.If you are not using the working papers, open a general ledger, an accounts receivable ledger, and an accounts payable ledger as of January 1. Enter the January 1 balance of each of the accounts, with a check mark in the Posting Reference column. The beginning balances for Part 2 are the same as the balances from your solution to Part 1 of Comprehensive Problem 2.2.Enter transactions for the month of January in the general journal. Post immediately to the accounts receivable and accounts payable ledgers.3.Post from the journal to the general ledger.4.Prepare schedules of accounts receivable and accounts payable.6.Journalize and post adjusting entries.