On January 1, Pulse Recording Studio (PRS) had the following account balances.

Accounts Payable	$	8,400
Accounts Receivable		6,800
Accumulated DepreciationEquipment		6,500
Cash		3,760
Cash Equivalents		1,680
Common Stock		10,700
Deferred Revenue		3,900
Equipment		29,400
Notes Payable (long-term)		12,200
Prepaid Rent		2,430
Retained Earnings		2,900
Supplies		530

The following transactions occurred during January.

1. Received $2,420 cash on 1/1 from customers on account for recording services completed in December.
2. Wrote checks on 1/2 totaling $4,280 for amounts owed on account at the end of December.
3. Purchased and received supplies on account on 1/3, at a total cost of $200.
4. Completed $3,900 of recording sessions on 1/4 that customers had paid for in advance in December.
5. Received $4,850 cash on 1/5 from customers for recording sessions started and completed in January.
6. Wrote a check on 1/6 for $4,040 for an amount owed on account.
7. Converted $1,040 of cash equivalents into cash on 1/7.
8. On 1/15, completed EFTs for $1,390 for employees salaries and wages for the first half of January.
9. Received $2,940 cash on 1/31 from customers for recording sessions to start in February.

Required:

1. Prepare journal entries for the January transactions.
2. Prepare journal entries for items (j)(n) from the bank reconciliation. j. The bank deducted $470 for an NSF check from a customer deposited on January 5. k. The check written January 6 has not cleared the bank, but the January 2 payment has cleared. l. The cash received and deposited on January 31 was not processed by the bank until February 1. m. The bank added $4 cash to the account for interest earned in January. n. The bank deducted $4 for service charges.
3. Prepare adjusting journal entries on 1/31. o. Depreciation for the month is $210. p. Salaries and wages totaling $1,300 have not yet been recorded for January 1631. q. Prepaid Rent will be fully used up by March 31. r. Supplies on hand at January 31 were $200. s. Received $200 invoice for January electricity charged on account to be paid in February but is not yet recorded. t. Interest on the promissory note of $28 for January has not yet been recorded or paid. u. Income tax of $1,200 on January income has not yet been recorded or paid.
4. Prepare adjusted 'Trial Balance' as of January 31.
5. Prepare an income statement for the period ended January 31.
6. Prepare a bank reconciliation.
7. Prepare a classified balance sheet as of January 31.
8. Calculate the current ratio at January 31.
9. Indicate whether PRS has met its loan covenant that requires a minimum ratio of 1.2
10. Calculate the net profit margin at January 31.
11. Indicate whether PRS has achieved its objective of 10%