Jan 2 Completed a consulting engagement and received cash of $7,200.

2 Prepaid three months office rent, $1,500.

7 Purchased software inventory on account, $3,900, plus freight in, $100.

15 Withdrew $500 for personal use.

18 Sold software on account, $1,100 (cost $700).

19 Consulted with a client for a fee of $900 on account.

20 Paid the secretarys salary for the month.

21 Paid on account, $2,000.

24 Paid utilities, $300.

28 Sold software for cash, $600 (cost $400).

31 Recorded these adjusting entries:

a) Accrued salary expense.

b) Depreciation of computer and furniture.

c) Expiration of prepaid rent.

d) Expiration of prepaid insurance.

e) Physical count of inventory, $2,800.

f) Earned the remaining revenue from December 22.

g) Dixie Lewis estimates that 3% of inventory sold will be returned

Required

Prepare adjusting entries on January 31 and post to the ledger.