Johns Company commenced operations in January 2017 and created a chart of accounts which it plans to use in the recording of its transactions:

Cash

Accounts receivable

Supplies

Prepaid insurance

Delivery truck

Accumulated depreciation

Accounts payable

Salary payable

Unearned service revenue

Destineys, capital

Destineys, drawing

Service revenue

Salary expense

Depreciation expense

Insurance expense

Fuel expense

Rent expense

Supplies expense

The company completed the following transactions during the month of January 2017:

a. Johns Company began operations by receiving $48,000 cash and a truck valued at $200,000. The business gave Destiney capital to acquire these assets.

b. Paid $1,600 cash for supplies.

c. Prepaid insurance, $4,200.

d. Performed delivery services for a customer and received $15,000 cash.

e. Completed a large delivery job, billed the customer $25,000, and received a promise to collect this amount within two months.

f. Paid employee salary, $68,500.

g. Received $9,000 cash for performing delivery services.

h. Collected $5,000 in advance for delivery service to be performed later.

i. Collected $5,500 cash from a customer on account.

j. Purchased fuel for the truck, paying $2,500 with a company credit card. (Credit Accounts payable)

k. Performed delivery services on account, $12,000.

l. Paid office rent, $600. This rent is not paid in advance.

m. Paid $200 on account relating to the fuel purchased for the truck.

n. Owner withdrew cash of $9,000 for personal use.

Requirements:

1. Record each transaction in the journal and key each by its letter as stated above. Explanations are not required.

2. Post the transactions that you recorded in Requirement 1 in their respective T-accounts and prepare the companys trial balance:

3. Having completed the requirements for 1 and 2 above, use the following info to prepare the adjusting entries for the company and thereafter prepare the companys adjusted trial balance.

a. Accrued salary expense, $3,500.

b. Depreciation expense, $2,000.

c. Prepaid insurance expired, $700.

d. Supplies on hand, $700.

e. Unearned service revenue earned during January, $2,500.

4. Prepare Johns Company income statement and statement of owners equity for the month ended January 31, 2017, and the classified balance sheet on that date.