Jan. $1$ In order to better service its growing business and manage its inventory more effectively. AWL purchased new computer equipment to run its inventory system for $$140,000,$ paying cash. AWL's management determined that the new computer equipment would have a useful life of $5$ years and have a residual value of $$8,000.$

$1$ AWL also entered into an agreement to lease a warehouse. This would allow the company to import larger shipments from its Asian suppliers and reduce the impact of the long shipping times. In accordance with the lease terms, AWL paid $$13,200,$ which represented the first six months' rent in advance.

$13$ A major hotel contacted AWL about supplying it with an $8-$metre saltwater aquarium for the lobby. AWL agreed to this and received a $$51,000$ payment from the hotel. AWL ordered the tank the same day and it was scheduled to arrive on February $25.$ AWL has guaranteed that it will be installed before the end of February.

$14$ AWL paid its employees $$12,000$ for wages earned during the first two weeks of January.

$15$ AWL's board of directors declared dividends in the amount of $$18,000,$ which will be paid on February $15.$

$19$ AWL made sales totalling $$62,000.$ Of this, half was cash and the balance was on account. The cost to AWL of the products sold was $$30,000.$

Adjusting entries:

Jan. $31$ The company recorded the $$12,000$ in wages earned by employees during the last two weeks of the month. These wages will be paid on February $1,2020.$

$31$ AWL recorded the adjusting entry to depreciate the new computer equipment.

$31$ AWL recorded the adjusting entry for the warehouse lease.