Jessica had the following transactions in January, her first month in business: Jan 1 Deposited $10,000 into a bank account in the businesss name to start the business on. Jan 2 Jessica rented a studio office where she will operate her business. She paid the first six months rent of $3,000. Rent will be due on the first of every month. Jan 3 Jessica purchased a company automobile. She bought a used car costing $7,200. She paid $1,200 cash and borrowed the remaining $6,000 at the bank to purchase the car. Jan 4 Jessica hired a part-time employee, Lee, to come in and clean, run errands, and help where needed around the office. She pays Lee $75/week to come in for 2 hours per day Monday through Friday. Lee will be paid every Friday. Today is Thursday, Lees first day of work. Jan 5 Jessica paid Lee $30 in wages for the week. (Lee worked Thursday and Friday her 1st week). Jan 6 A customer came in and contracted for a portrait. The price of the portrait will be $500. The customer paid $200 in advance and the remaining $300 will be paid when the portrait is delivered. Jan 7 A customer ordered a custom painting. They agreed upon a price of $300 to be paid upon delivery of the painting. (Hint: A/R) Jan 7 Jessica purchased artists paint, paint brushes, canvas, and other supplies on account for the business at a cost of $1,500. The supplies should last her at least 2-3 months. Jan 8 Jessica completed and delivered other paintings to customers (not the customer from Jan 6), receiving $1,200 in cash for fees earned. Jan 9 Jessica paid $300 for local newspaper and radio advertising for the month of January. Jan 10 Jessica sold paintings to customers on account for $650. Jan 11 Jessica bought gasoline for the company car to meet several customers in their homes to discuss artist services she is to perform. The fuel cost was $60. Jessica expects the fuel to last until the end of the month. Jan 12 Jessica paid Lee $75 in wages for the week. Jan 13 Jessica sold a painting she had on display in her shop for $150 cash. Jan 14 Jessica sold 2 paintings on display for a total of $350 cash. Jan 15 Jessica purchased some office furniture for the business for $1,200. Jan 16 Jessica purchased cleaning supplies for the office, paying cash. The cleaning supplies cost $25 and Jessica expects them to be used up by the end of the month. Jan 17 A customer contracted for a portrait for $450. She paid the full contract price in advance. Jan 18 Jessica completed and delivered the portrait for the customer from January 6. The customer paid Jessica the $300 still owed on the portrait. Jan 19 Jessica paid Lee $75 in wages for the week. Jan 20 Jessica sold a painting for $150 cash. Jan 21 Jessica sold 5 more completed paintings on account for $1,200. Jan 22 Jessica sold completed paintings to customers for cash, receiving $600. Jan 23 Jessica sold a painting for $200 on account. Jan 24 Jessica withdrew $500 from the company bank account for personal use. Jan 25 Jessica received $650 from customers on account. Jan 26 Jessica paid Lee's $75 in wages for the week. Jan 27 A customer ordered a portrait to be painted at an agreed-upon price of $500. The customer paid a $200 deposit on the portrait. The balance is to be paid upon receipt of the portrait. Jan 28 Jessica completed the custom painting ordered by the customer on Jan 7. The customer is to pick the painting up on Feb 3. Jan 29 Jessica sent Lee out to purchase $100 worth of finger foods and soft drinks for an open house and grand opening event she had planned for that afternoon to showcase her paintings and artwork for sale. (Consider this miscellaneous exp). She expects all the food and drinks to be consumed during the event. Jan 30 Jessica received the first utility bill for the business. Utilities for January were $200. The utility bill is due February 10th. Jan 31 The first telephone bill for the company came in the mail. Telephone service for the month of January was $60. The bill is due on Feb 10th. Jan 31 Paid the $1,500 for the supplies purchased on account on Jan 7th.

Adjusting Entries: Jan 31 Jessica had $900 in painting supplies remaining at the end of the month. Jan 31 Depreciation on the automobile for January is $200. Jan 31 Depreciation on the office furniture is $50. Jan 31 Jessica owes Lee $45 for wages through Wed, Jan 31. The wages will be paid on Friday (Feb 2). Jan 31 Recorded the amount of prepaid rent that was used up in January. (See Jan 2 transaction).

JC's Atelier Income Statement For the Year Ended December 31, 2024 JC's Atelier Balance Sheet For the Year Ended December 31, 2024 JC's Atelier Statement of Owner's Equity For the Year Ended December 31, 2024