From the following information Prepare-(40marks)

• Journal
• T-Accounts
• Trial Balance
• Adjusted Journal
• Adjusted trial balance
• Income statement
• Statement of changes in equity
• Balance sheet
• Closing Journal entries

for the month ending January 31st 2021 in the books of Seth &Co.

Mr. Seth started business in January 2021. Following transactions happened in the business In the month of January-

• Owner invested the following assets into the business-

Cash- $10,000

Furniture- $50,000

Supplies - $5,000

Equipment - $25,000

• Business hired 2 accountants to be joining from next month @ salary of $5500 each per month.
• Business paid the following expenses-

Phone expense $2,000

Utilities expense $3,000

Stationery expenses $9,000

Supplies Expense $5,500

• Business bought supplies on account $10,000
• Mr. Seth withdraw $8000 from business to pay for his house mortgage.
• business paid $5000 for supplies bought in (4)
• bought equipment $50,000. Half of the payment made in cash and half on account.
• received $80,000 from a client for maintenance services provided.
• paid remaining $5000 for supplies bought in (4)
• received $60,000 from client for repairing services provided

Adjustments-

• On January 1, 2021 prepaid insurance paid for three months $3600.
• Depreciation on equipment costing $50,000, salvage value $5000 and life 5 years