Morgan Corporation opened the year 20X6, with the following trial balance information:

Cash$25,000

Accounts Receivable75,000

Land150,000

Accounts Payable-

$60,000Loan Payable-

30,000Capital Stock-

50,000Retained Earnings-

110,000Dividends-

-Revenues-

-Salaries Expense-

-Rent Expense-

-Supplies Expense-

-Interest Expense-

$250,000$250,000

January's transactions are listed below: Jan. 2 Collected $10,000 on an open account receivable.

Jan. 3Purchased additional tract of land for $20,000 cash.

Jan. 5Provided services on account to a customer for $15,000.

Jan. 7Borrowed $12,000 on a term loan payable.

Jan. 11Paid salaries of $3,000.

Jan. 12Provided services to customers for cash, $11,000.

Jan. 15Purchased (and used) office supplies on account, $2,000.

Jan. 17The company paid shareholders a $2,500 dividend.

Jan. 20Paid rent of $1,700.

Jan.23Paid salaries of $4,000.

Jan. 24 Paid $16,000 on the open accounts payable.

Jan. 29Collected $50,000 on accounts receivable.

Jan. 31Repaid loans of $22,000.

Jan. 31Paid interest on loans of $600.

(a)Create the general ledger accounts, and enter the initial balances at the start of the month of January.This requirement is already completed on the worksheets.(b)Prepare journal entries for January's transactions.(c)Post January's transactions to the appropriate general ledger accounts.(d) Prepare a trial balance as of January 31.(e)Prepare an income statement and statement of retained earnings for January, and a balance sheet as of the end of January.