Once all the journal entries are recorded in the practice set, record the adjusting journal entries below with the date being January 31, 2020. The following are the adjusting journal entries for the month of January Record Adjusting Entries: Record the following month end adjusting entries for the month of January Write the journal entries in the practice set after the original journal entries and round to the nearest cent. a. 1,550 of wages for the part-time help from Irene's Temp Services for January should be accrued. Do not worry about payroll taxes; Temp Services Inc. will handle these. b. $150 of store supplies remained on hand. c. $43 of office supplies remained on hand. 71 Page d. Make the necessary adjusting entry for one month's depreciation for the furniture and fixtures using Straight Line Depreciation. e. Make the necessary adjusting entry for the store and office equipment using Straight Line Depreciation. f. One month of depreciation for computer equipment using Straight Line Depreciation. 8. One month of prepaid insurance has expired. h. One month of prepaid rent has expired. i. Record the interest on the loan from Wells Fargo. Sweaty Bands, Inc. Journal Entries N Date Account 1 2-Jan Account No entry Debit Credit Calculation 22-Jan 25,000.00 10000 Cash 39003 Common Stock 25,000.00 3 3-Jan 3,200.00 Jan to April 18000 Prepaid Rent 10000 Cash 3,200.00 4 3-Jan 1,800.00 6 months 18100 Prepaid Insurance 10000 Cash 1,800.00 5 3-Jan 10,000.00 15000 Store & Office Equipment 21200 Note Payable - Store & Office Supply 4 years & 2,000 residual 10,000.00 1 yr 6% note 65-Jan 7,000.00 6 mnth, 6% note 10000 Cash 21100 Note Payable - Wells Fargo Bank 7,000.00 7 5-Jan 13,000.00 5 years & 1,000 residual 15100 Furniture & Fixtures 10000 Cash 13,000.00 8 6-Jan 900.00 3 years 15200 Computer Equipment 10000 Cash 900.00 96-Jan 300.00 13100 Office Supplies 10000 Cash 300.00 10 8-Jan 11,000.00 12000 Inventory - Orange Headbands 20000 Account Payable 11,000.00 11 8-Jan 5,000.00 12100 Inventory - Blue Headbands 20000 Account Payable 5,000.00 12 13-Jan 350.00 60100 Legal expense 10000 Cash 350.00 13 13-Jan No entry 8.25% sales tax 14 13-Jan 8,000.00 8,000.00 11000 Account Receivable 40000 Sales 50000 Cost of goods sold 12000 Inventory - Orange Headbands 12100 Inventory - Blue Headbands 4,000.00 2,500.00 1,500.00 15 14-Jan 200.00 13200 Store Supplies 20000 Account Payable 200.00 16 14-Jan 5,500.00 12000 Inventory - Orange Headbands 20000 Account Payable 5,500.00 17 15-Jan 5,953.75 5,500.00 453.75 5500*8.25% 11000 Account Receivable 40000 Sales 23300 Sales Tax payable 50000 Cost of goods sold 12000 Inventory - Orange Headbands 12100 Inventory - Blue Headbands 2,750.00 1,500.00 1,250.00 18 20-Jan 200.00 20000 Account Payable 10000 Cash 200.00 19 22-Jan 5,953.75 10000 Cash 11000 Account Receivable 5,953.75 20 22-Jan 16,000.00 11000+5000 20000 Account Payable 10000 Cash 16,000.00 21 22-Jan 2,900.00 12100 Inventory - Blue Headbands 20000 Account Payable 2,900.00 22 23-Jan 850.00 60500 Advertising and Promotion expense 12100 Inventory - Blue Headbands 12000 Inventory - Orange Headbands 750.00 100.00 23 23-Jan 8,000.00 10000 Cash 11000 Account Receivable 8,000.00 24 23-Jan 375.00 60400 Delivery expense 11000 Cash 375.00 25 23-Jan 65.00 13100 Office Supplies 10000 Cash 65.00 26 23-Jan 11,496.15 10,620.00 876.15 10620*8.25% 10000 Cash 40000 Sales 23300 Sales Tax payable 50000 Cost of goods sold 12000 Inventory - Orange Headbands 12100 Inventory - Blue Headbands 5,310.00 2,655.00 2,655.00 27 23-Jan 8,400.00 5500+2900 20000 Account Payable 10000 Cash 8,400.00 28 25-Jan 4,580.50 4,300.00 280.50 10000 Cash 40000 Sales 23300 Sales Tax payable 50000 Cost of goods sold 12000 Inventory - Orange Headbands 12100 Inventory - Blue Headbands 2,150.00 2,000.00 150.00 29 28-Jan 277.23 60550 Utility expense 23400 Utility payable 277.23 30 30-Jan 21200 Note Payable - Store & Office Supply 60700 Interest expense 10000 Cash 833.33 50.00 883.33 31 30-Jan 2,782.03 2,570.00 212.03 10000 Cash 40000 Sales 23300 Sales Tax payable 50000 Cost of goods sold 12000 Inventory - Orange Headbands 12100 Inventory - Blue Headbands 1,350.00 350.00 1,000.00 32 30-Jan 1.822.43 453.75+876.15+280.5+212.025 23300 Sales Tax payable 10000 Cash 1,822.43 33 31-Jan 100.00 39007 Dividends 10000 Cash 100.00 Stockholders' Equity 39003 Common Stock 39005 Retained Earnings 39007 Dividends Current Assets 10000 Cash 11000 Accounts Receivable 12000 Inventory - Orange Headbands 12100 Inventory - Blue Headbands 13100 Office Supplies 13200 Store Supplies 18000 Prepaid Rent 18100 Prepaid Insurance 18200 Prepaid Advertising Revenue 40000 Sales Expenses Long-Term Assets 15000 Store & Office Equipment 17000 Accumulated Depreciation -Store & Office Equipment 15100 Furniture & Fixtures 17100 Accumulated Depreciation-Furniture & Fixtures 15200 Computer Equipment 17200 Accumulated Depreciation - Computer Equipment 50000 60100 60150 60200 60300 60350 60400 60500 Cost of Goods Sold Legal Expense Store Supplies Expense Office Supplies Expense Insurance Expense Wages Expense Delivery Expense Advertising and Promotion Expense Utility Expense Rent Expense Depreciation Expense Interest Expense Bank Service Fee 60550 60600 60650 60700 60750 Current Liabilities 20000 Accounts Payable 21100 Note Payable - Wells Fargo Bank 21200 Note Payable-Store & Office Supply 23100 Wages Payable 23200 Interest Payable 23300 Sales Tax Payable 23400 Utility Payable Long-Term Liabilities 27000 Mortgage Payable 27100 Notes Payable Sweaty Bands, Inc. 123 Main Avenue El Paso, Texas 79945 WELLS FARGO BANK STATEMENT home Sweaty Bands, Inc. $0 Balance, beginning Deposits and other credits Checks and other debits Balance on statement date 01/01/2020 January January 01/31/2020 $57,449.90 $37,163.33 $20,286.57 Deposits Added 1/2/2020 Deposit 1 $25,000.00 1/5/2020 Deposit 2 $7,000.00 1/19/2020 Deposit 3 $5,953.75 1/23/2020 Deposit 4 $8,000.00 1/23/2020 Deposit 5 $11,496.15 Wells Fargo Bank Statement - Checks Paid and other Debits 1001 $3,200.00 1007 $200.00 1002 $1,800.00 1008 $16,000.00 1003 $13,000.00 1012 $883.33 1004 $900.00 NSF $300.00 1005 $300.00 DM $30.00 Check Printing Fee 1006 $530.00 SC $20.00 Charge for NSF Check *Assume any errors are made by the bank