GENERAL INSTRUCTIONS FOR JANUARY 1. Journalize the transactions listed below and on the next page and post to the ledger accounts. Omit explanations. 2. Using the worksheet, prepare an unadjusted trial balance 3. Journalize the adjusting entries in the worksheet and post to the general ledger. Adjustment data are provided on the next page. 4. Using the worksheet, prepare and adjusted trial balance 5. Complete the worksheet so that the Income Statement and Balance Sheet columns are filled in 6. Now post the adjustments to the general ledger. 7. Prepare an income statement for the month ended January 31, 2016. 8. Prepare a retained earnings statement for the month ended January 31, 2016. 9. Prepare a balance sheet as of January 31, 2016. 10. Complete the analysis test for January. ------------------------------- TRANSACTIONS FOR JANUARY 2016 ----------------------- General Entries Jan 5 Received $60,000 from Sophia Leon and issued 12,000 common shares of $5 par value. 5 Paid $6,000 of general liability and property insurance. The disbursement by Check No. 100 was for a complete year of service. 6 Rented an office and furniture for $2,000 per month. Issued Check NO. 101 for $6,000 representing the first and last months rent and the security deposit. (The security deposit, the last months rent and the current rent are to be classified separately.) 7 Issued Check N. 102 for $1.600 for the purchase of office supplies. 7 Issued Check No. 103 for $7,000 for advertising to be run in local newspapers and magazines in the month of January. 10 Roxanne Perkin engaged House of Style to renovate her oceanfront condominium. Received $10,000 from Roxana Perini after services were completed. 12 Recorded $6,000 (net 30) decorating fees earned on account from Maribel Thompson to remodel her office. 20 Received $8,000 from Fred Lambert, a customer. These fees were related to services rendered to improve his office lobby. 25 Recorded $12,000 (net 60) Decorating fees revenue earned on account from Robert Adrian, a longtime customer who wanted to enhance his residences dcor. 30 Issued Check No. 104 for $190 to pay the utilities bill for this month. 30 Issued Check No. 105 for $300 in payment of the telephone bill for the month. 30 Issued Check No. 106 for $200 for postage. 30 Issued Check No. 107 for $450 for business automobile expenses. 30 Issued Check No. 108 for $5,600 to Sophia Leon for salary. (Payroll taxes are not considered for this entry.) Adjusting Entries A. Expired insurance for the period, $500. B. Supplies on hand as of the end of the month, $1,000.