Kent Kingsley has recently commenced a new legal practice, providing legal services in relation to family, housing and criminal law. The legal practice commenced on 1 January 2023, and is called Kents Legal. Kingsley will operate the business as a sole trader.

During the first month of operations, the following events and transactions occurred. Note: all deposits/payments were made into/from the business bank account.

Date: 1 January
Detail: Kingsley contributed $21,000 of his personal funds into the legal practice.

Date: 1 January
Detail: Kents Legal paid $2400 for insurance for the legal practice. This insurance will cover the period 1 January 2023 31 December 2023.

Date: 1 January
Detail: Kents Legal paid $1500 in rent. This rent will cover the period 1 January 2023 - 31 March 2023.

Date: 2 January
Detail: Kents Legal purchased advertising flyers for $400.

Date: 3 January
Detail: Kents Legal purchased office equipment for cash for $5,000.

Date: 10 January
Detail: Kent agreed to represent a client in court who is facing traffic offence charges. The services (court appearance) will be provided in February. Kent has received $3200 in advance which he has banked into the business bank account.

Date: 15 January
Detail: Kent provided legal services for a client who is getting divorced. The payment was for $700 which Kent banked into the business bank account.

Date: 18 January
Detail: Kent withdrew $700 from the business bank account to cover some personal expenses.

Date: 20 January
Detail: Kent received a bill from Advanced Tax Accountants, in relation to some tax advice he received regarding the formation of his legal practice. The amount payable on the invoice is $800 which Kent has to pay by 8 February 2023.

Date: 24 January
Detail: Kent provided legal services to a client who is buying a house. Kent received $1000, which he banked into the business bank account.

Date: 25 January
Detail: Kent provided legal services to a client involved in a rental dispute on credit terms for $750. The payment is due from the client by 18 February.

Date: 27 January
Detail: Kent paid Advanced Tax Accountants in relation to the 20 January invoice.

Date: 31 January
Detail: Kents Legal received an invoice from Optus for telephone and internet used by the business in January. The amount payable on the invoice is $100 with the payment due by 28 February 2023.

Date: 31 January
Detail: Bank fees of $11 were deducted form the business bank account for January 2023.

Date: 31 January
Detail: Interest revenue of $2 was added to the business bank account for interest earned up to 31 January 2023.

Additional information as at 31 January 2023

• Depreciation to be recognised in the financial statements up to 31 January 2023 relates to office equipment. It is expected to last for 50 months.
• The business will prepare monthly financial statements.
• Ignore any GST.

making journal entries with all adjusting entries on 31 january