1. Open the following T-accounts in the ledger: Cash, $16,400; Accounts Receivable, $1,750; Supplies Inventory, $0; Office Supplies, $200; Prepaid Rent, $0; Equipment, $1,800; Accumulated DepreciationEquipment , $30; Furniture, $4,200; Accumulated DepreciationFurniture, $70; Accounts Payable, $4,700; Salaries Payable, $685; Unearned Revenue, $700; Common Stock $18,000; Retained Earnings $165; Dividends, $0; Income Summary, $0; Service Revenue, $0; Sales Revenue, $0; Cost of Goods Sold, $0; Salaries Expense, $0; Rent Expense, $0; Utilities Expense, $0; Depreciation ExpenseEquipment, $0; and Depreciation ExpenseFurniture, $0.
2. Journalize and post the January transactions. Compute each account balance, and denote all the balance as Bal.
3. Prepare the month ended January 31, 2020 income statement of Ambulance Supply Company. Use the multi-step format. List Service Revenue under gross profit and ignore classifying the expenses as selling and administrative.
4. Journalize and post the closing entries. Denote each closing amount as Clo. After posting all closing entries, probe the equality of debits and credits in the ledger.
5. Compute the gross profit percentage of Ambulance Supply Company.