1. Journal Entries

The following occurred during January 2022, the first month of business for Dallas, Inc., a consulting company.

1/01 Dallas issued 80,000 shares of common stock for $500,000 cash.

1/01 Paid $6,000 for two months rent.

1/01 Purchased $82,000 furniture and fixtures. Paid $20,000 cash and signed a 6-month 9% note for the balance. The furniture and fixtures are expected to have a useful life of six years and a residual (salvage) value of $10,000.

1/01 Hired an assistant for $4,000 per month. The assistant will be paid on the first of each

month for work performed the prior month.

1/01 Purchased $15,000 of Office Supplies on account.

1/10 Received $4,000 for consulting services performed January 1-10.

1/11 Paid for Office Supplies purchased on 1/01.

1/15 Borrowed $40,000 from Third City Bank on an 8-month 6% note.

1/15 Paid $4,800 for a two-year insurance policy.

1/18 Received $5,000 in advance for consulting services to be performed in February and March.

1/30 Received a bill for $900 for January utilities. The bill is due on February 10.

1/31 Placed an order for a $6,000 computer that will be delivered in February. Dallas

will pay cash for the order when the computer arrives.

Dallas prepares adjusting journal entries monthly. A count determines that $6,000 of Office

Supplies are on hand on 1/31. Dallas uses the straight-line method of depreciation.

1. Prepare all necessary journal entries to record the above. If no entry is required state NA.

Prepare all necessary adjusting entries on 1/31. show work