It is now the first of February and Genevieve had a very busy January. Genevieve has journalized and posted Januarys transactions, the adjusting entries, and prepared the January 31 Trial Balance following your instructions and those she found on the internet. On January 28, Genevieve initially recorded some additional equipment purchased on account for $1,500 as supplies expense. After posting the original transaction, she then made an entry to correct this error. Had she not made a correcting entry, would the financial statements have been misstated? How? During January, Geoff Zanetti called asking for a time extension on his $400 Accounts Receivable as he is out of province until Feb 26. Geoff likes to pay in person and was not able to come around in January to settle his account. Genevieve agreed and had him e-mail over a signed, two-month, 6% note. The extension starts January 1 and payment plus interest are due February 28. Genevieve needs your help in preparing the entry to record Geoffs extension.

Genevieve realized that she can't compete with the big pet stores when it comes to selling pet food so she has decided to not sell it any more. The pet food supply purchased in December sold in January and no more was purchased. Inform Genevieve of what missing transaction remains based on a review of the January Trial Balance. Assuming perpetual inventory system is used. Puurfect Spa and Doggy Daycare Adjusted Trial Balance January 31, 2022 Debit Credit Cash $8,546 Accounts receivable 250 Allowance for doubtful accounts $12 Note Receivable 400 Supplies 90 Merchandise Inventory 800 Equipment 14,460 Accumulated depreciation - Equipment 540 Accounts payable 2,237 Interest Payable 18 Unearned revenue 100 Bank loan payable 5,500 G. Shannara, capital 10,500 G. Shannara, drawings 2,000 Service revenue 15,500 Sales 1,100 Advertising expense 250 Depreciation expense 540 Interest Expense 35 Utilities Expense 1,500 Rent expense 3,000 Salaries expense 576 Supplies expense 1,980 Water expense 1,080 Total $35,507 $35,507