Example: The Halverson Co. started business on January 1, 2015. During January, the following transactions were completed: 1 Issued 2,000 shares of common stock at its par 2 Purchased a two-year property insurance policy for 5 Exchanged 4,000 shares of common stock for a 6 Purchased inventory on credit for $20,000 (periodic 10 Borrowed $30,000 from a local bank to be repaid in six 15 Sold merchandise for $23,000. Half the sale was paid 20 Received a payment on an account receivable in the 23 Paid half the bill for the purchases made on January 6. value of $20,000 in exchange for cash. $1,200 cash. building worth $32,000 and land worth $8,000. inventory system). months, plus interest of 6%. in cash, and the other half was on credit. amount of $2,000. 30 Declared cash dividend of $2,000 payable on February 20, 2015 Paid operating expenses of $4,200. 31 Required 1. Prepare general journal entries to record the transactions. 2. Post the journal entries to accounts. 4. Prepare adjusting entries assuming the following information: A. Included in operating expenses are office supplies purchased for $200. A count shows $110 of the supplies are still unused at January 31. B. Accounts receivable of $500 are estimated to be uncollectible. C. The building has a five-year life and will be depreciated using a straight-line method (record one full month's depreciation). D. Ending inventory is $15,000. 5. Prepare an adjusted trial balance 6. Prepare closing entries. 7. Prepare a post -closing trial balance 8. Prepare the balance sheet and income statement