Journalizing purchase and sale transactions, making closing entries, preparing financial statements, and computing the gross profit percentage. (20 Points)

This problem continues the Ambulance Supply Company situation from Part 3.

Ambulance Supply Company provides supplies and consults. In January, the company began selling supplies along with services and uses the perpetual inventory system to account for supplies inventory. During January, Ambulance Supply Company completed the following transactions:

____________________________________________________________________________

Jan. 2 Completed a consulting engagement and received cash of $7,800.

2 Prepaid three months office rent, $1,650.

7 Purchased 80 unit supplies inventory on account, $1,680, plus freight in $80.

18 Sold 40 supplies units on account, $3,500 (cost $880)

19 Consulted with a client for a fee of $1,000 on account.

20 Paid employee salaries, $2,055, which includes accrued salaries from December.

21 Paid on account $1,760

22 Purchased 240 units supplies inventory on account, $6, 240.

24 Paid utilities, $250

28 Sold 120 units supplies for cash, $4,680 (cost $2,960).

31 Recorded the following adjusting entries:

1. Accrued salaries expense, $686
2. Depreciation, $100 (Equipment, $30; Furniture $70).
3. Expiration of prepaid rent, $550.
4. Physical count of supplies inventory, 145 units, $3,770.

____________________________________________________________________________

Requirements:

1. Open the following T-accounts in the ledger: Cash, $16,400; Accounts Receivable, $1,750; Supplies Inventory, $0; Office Supplies, $200; Prepaid Rent, $0; Equipment, $1,800; Accumulated DepreciationEquipment , $30; Furniture, $4,200; Accumulated DepreciationFurniture, $70; Accounts Payable, $4,700; Salaries Payable, $685; Unearned Revenue, $700; Common Stock $18,000; Retained Earnings $165; Dividends, $0; Income Summary, $0; Service Revenue, $0; Sales Revenue, $0; Cost of Goods Sold, $0; Salaries Expense, $0; Rent Expense, $0; Utilities Expense, $0; Depreciation ExpenseEquipment, $0; and Depreciation ExpenseFurniture, $0.
2. Journalize and post the January transactions. Compute each account balance, and denote all the balance as Bal.
3. Prepare the month ended January 31, 2020 income statement of Ambulance Supply Company. Use the multi-step format. List Service Revenue under gross profit and ignore classifying the expenses as selling and administrative.
4. Journalize and post the closing entries. Denote each closing amount as Clo. After posting all closing entries, probe the equality of debits and credits in the ledger.
5. Compute the gross profit percentage of Ambulance Supply Company.