Exercise 1. A merchandising company called Hublot Co, has the following trial balance at the beginning of the year. Accounts Cash Inventory Furniture Building Accounts payable Capital stock Total Hublot Co Trial balance 01/01/2018 Debit Credit $23,000 20,000 2,000 10,000 $ 15,000 40,000 $55,000 $55,000 The following were further transactions in the month of Jan, 2018 (the company uses the perpetual inventory system): Jan. 1: Purchased inventory worth $ 5,000 for cash. January 2. Purchased furnishings from EQUP company for $4,400. Made a $1,000 cash down payment and balance payable in 15 days. January 4. Borrowed $20,000 from the bank January 12. Sold inventory on credit for the amount of $12,000. The goods had a cost of $8,000. January 15. Paid an advance payment of $24,000 for the 1-year insurance policy. January 20. Collected $7,300 of the amounts billed to customers on January 12. January 23: Paid $1,800 of the balance due on the office furnishings January 25. Received advance payment from customers of $15,000. January. 26: Received full payment from the sales on Jan 12. January 31. Paid $8,000 salaries earned by employees in January. January 31. Paid off $ 2,000 of the accounts payable of the sales of January 2. Required 1. Prepare the journal entries for the month of January 2018 using the accounts provided in the table below. 2. Prepare the general ledger at the end of January 2018. 3. Prepare the trial balance at the end of the month and the balance sheet. Inventory Cash Equipment Accounts payable Furniture Sales revenue Cost of goods sold Accounts receivables Salaries expense Prepaid insurance Utility expense Unearned revenue