Question
Journalize the transactions for the month of January in the general journal. Make (post) the entries in the ledger. USE T ACCOUNTS Prepare the trial
Journalize the transactions for the month of January in the general journal.
Make (post) the entries in the ledger. USE T ACCOUNTS
Prepare the trial balance without adjustments as of January 31, 2020.
Make the following adjustments:
a. The depreciation of the equipment for one month is $ 205.
b. One month of prepaid insurance expired.
c. The cleaning supplies inventory balance at the end of the month is $ 200.
d. Salary accrued but not paid to an employee (unpaid employee salary) is $ 600.
Prepare the following reports in their corresponding spreadsheet:
a. Income statement
b. Statement of owner equity
c. Balance sheet
January 1 Invested $ 10,000 in cash to start the business. January 3 Purchased a business vehicle for $ 12,000 of which $ 3,000 was in cash and the remainder in credit January 3 Purchased cleaning supplies totaling $ 1,500. January 4 Paid a $ 2,000 prepayment insurance policy effective January 1. January 5 Performed a service to a customer (fee earned) in the amount of $ 2,100. January 10 Paid a credit to the vehicle purchased for $ 500 January 15 Paid salary to employees for $ 1,800. January 16 Performed a cleaning job on a building on credit for $ 3,000. January 18 He did cleaning work in an office and collected it in cash for $ 2,500. January 20 The customer who had the job performed on January 16 paid $ 1,200. January 21 Paid $ 80 for gas for business vehicle. January 22 Performed office cleaning work for $ 1,000 cash. January 25 Paid $ 20 for gas for business vehicle. January 28 Paid $ 500 for advertising expense. January 29 Made a withdrawal for personal use in the amount of $ 500. January 30 Paid employee salary of $ 1,800.
Use the following accounts:
111 Cash 112 Accounts receivable (accounts receivable) 128 Cleaning supplies 130 Prepaid insurance 157 Equipment 158 Accumulated depreciation equipment 201 Accounts payable 212 Salaries payable 301 Carmen Ramos, capital 305 Carmen Ramos, retreat (drawing) 350 Income summary 400 Fee earned 632 Gas & oil expense 633 Cleaning supplies expense 710 Depreciation expense 712 Insurance expense 720 Salaries expense
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