Instructions

• Journalize the transactions for the month of January 2018, beginning on page GJ1. Be sure and list the Debit Account(s) first; Credit Account(s) next. Write a brief explanation for each transaction, and skip a line in-between transactions.
• Post the journal entries to the general ledger accounts. Be sure and use the Post Reference #s for each posting. (Hint: the balance of the cash account after all journal entries have been posted should be $9,915).
• Prepare the Trial Balance section of the worksheet.
• Prepare the Adjustments section of the worksheet.
  • Compute and record the adjustment for supplies used during the month. An inventory showed supplies on hand of $250.
  • One month insurance has been used up.
  • Record the adjustment for depreciation of Office Equipment of $85 for the month.
  • Record the adjustment for depreciation of Tools of $125 for the month.
• Complete the worksheet.
• Prepare an Income Statement, Statement of Owners Equity, and Balance Sheet for the month. Be sure to add the date to each financial statement.
• Journalize and post the Adjusting entries.
• Journalize and post the Closing entries.
• Prepare a Post-closing Trial Balance.

CHART OF ACCOUNTS

Assets Revenue

111 Cash 411 Income from Services

112 Accounts Receivable

114 Supplies Expenses

116 Prepaid Insurance 511 Advertising Expense

121 Office Equipment 512 Supplies Expense

122 Accum. Depr., Office Equipment 513 Insurance Expense

123 Tools 514 Utilities Expense

124 Accum. Depr., Tools 515 Salaries Expense

125 Truck 516 Truck Expense

521 Depreciation Expense - Office Equipment

Liabilities 522 Depreciation Expense - Tools

211 Accounts Payable

Owners Equity

311 Mike Hammer, Capital

312 Mike Hammer, Drawing

330 Income Summary

Transactions for the month:

You made the following transactions for Mikes Quality Repair Services during the month of January:

Jan. 1 Invested $15,000 cash, and a truck with a fair market value of $8,500 into the business.

3 Paid $1800 to Liberty Mutual for a 1-year insurance policy. The policy is effective immediately. Ck# 1001

4 Bought tools from Sears on account, $7500, Inv. #X-1357

5 Bought computer system from Bens Computer Center, $5000, putting $2500 down and putting the balance on account, Ck. #1002, Inv. #Y-4152.

6 Bought supplies-Office Mart, $850, Ck. #1003.

7 Performed services for cash, $1,650.

10 Performed services on account, $1275.

12 Received and paid telephone bill, $420, ck#1004.

13 Bought supplies on account from Office Mart, $900, Inv. AB1477.

15 Received and paid the utility bill, $600, Ck. #1005.

15 Paid salary for office clerk, 1/1-1/15-$1000, Ck# 1006.

20 Received The Times Review bill for advertising for the month, $410, Inv. #TR198.

(Note that you did not PAY the bill you only received it).

21 Performed services $7,250, received $2,250 cash, with the balance due in 30 days.

27 Received from clients $1,275, for work completed on January 10.

28 Paid for oil change on truck, $90, ck#1007.

29 Withdrew cash for personal use, $1500, Ck. #1008.

30 Paid salary for office clerk, 1/16-1/30, $1000, ck#1009.

30 Made partial payment of $500 to Office Mart for supplies purchased on January 13th, Ck#1010.