J. Jones International

J. Jones opened a consulting business on January 2, 2019. He hired an old friend. His friend had the right to buy 25% of the company for $100,000. The following transactions occurred in January and February:

January:

2 Cash injection of $90,000 from Jones in cash. $40,000 is to be treated as a shareholder loan. The balance as a capital investment. The cash was deposited in the company bank account. Jones also gave a computer equipment worth $2,000, but wanted nothing in return for it.

3 Purchase of $570 of supplies for cash and $8,200 worth of furniture on account.

3 Signed a 3-year lease with monthly rates of $1,110. Paid rent for January.

4 Performed consulting services for Client 1 and received $2,500 in cash.

7 Paid $33,000 cash to acquire land for a future office site.

11 Consulted for Client #2 and sent an invoice to the client for $2,100.

12 Bought a used company car for $5,000. Salvage value estimated at $2,000 & useful life is 3 years.

15 Paid administrator a salary of $1975.

16 Paid for the furniture bought on account on January 3.

18 Received partial payment of $600 from client #2.

19 Provide major consulting to client #4, Invoiced for $11,350.

22 Paid utility bills totalling $300.

29 Received $2,700 payment for additional consulting provided to client #4.

31 Paid administrator a salary of $1975.

31 Jones withdrew $12,000 for personal use.

Status of J. Jones International:

The administrator was to do the books, but did nothing. Jones is not a happy camper. He has heard you are

an up and coming accounting whiz. You should including adjusting entries, adjusted trial balances, financial statements and closing entries.

Notes:

1. Include a cover sheet and table of contents
2. After each journal entry, draw the balance sheet diagram used in class and show the impacts on the balance sheet of the entries being posted.