On January 1, 2018, the general ledger of Dynamite Fireworks includes the following account balances: Accounts Debit Credit Cash $ 24,100 Accounts Receivable 5,500 Supplies 3,400 Land 53,000 Accounts Payable 3,500 Common Stock 68,000 Retained Earnings 14,500 Totals $ 86,000 $ 86,000 During January 2018, the following transactions occur: January 2 Purchase rental space for one year in advance, $6,900 ($575/month). January 9 Purchase additional supplies on account, $3,800. January 13 Provide services to customers on account, $25,800. January 17 Receive cash in advance from customers for services to be provided in the future, $4,000. January 20 Pay cash for salaries, $11,800. January 22 Receive cash on accounts receivable, $24,400. January 29 Pay cash on accounts payable, $4,300. The following information is available on January 31, 2018. Rent for the month of January has expired. Supplies remaining at the end of January total $3,100. By the end of January, $3,425 of services has been provided to customers who paid in advance on January 17. Unpaid salaries at the end of January are $5,590.

1

Purchase rental space for one year in advance, $6,900 ($575/month).

2

Purchase additional supplies on account, $3,800.

3

Provide services to customers on account, $25,800.

4

Receive cash in advance from customers for services to be provided in the future, $4,000.

5

Pay cash for salaries, $11,800.

6

Receive cash on accounts receivable, $24,400.

7

Pay cash on accounts payable, $4,300.

8

Record the adjusting entry for rent. Rent for the month of January has expired.

9

Record the adjusting entry for supplies. Supplies remaining at the end of January total $3,100.

10

Record the services provided to customers who paid in advance. By the end of January, $3,425 of services has been provided to customers who paid in advance on January 17.

11

Record the adjustment for salaries payable. Unpaid salaries at the end of January are $5,590.

12

Record the entry to close the revenue accounts.

13

Record the entry to close the expense accounts.

8 Jan 31 575 Rent expense Prepaid rent 575 Jan 31 Supplies expense 4,100 Supplies 4,100 10 Jan 31 Deferred revenue Service revenue Salaries expense Salaries payable Jan 31 12 Jan 31 Service revenue Retained earnings 13 Jan 31 Retained earnings Supplies expense Salaries expense Rent expense Requirement General Ledger