PART 1

During January, the following transactions were completed for Kennesaw Cleaners, Inc (KCI).

1-Jan On January 1, KCI issued stock in exchange for $25000 cash.

2-Jan On January 2, KCI purchased a truck for $14,000, paying $2,000 cash down and signing a 5-year, 2% note for the remaining $12,000.

3-Jan On January 3, KCI purchased cleaning supplies for $1000 on account to be used over several months.

5-Jan On January 5, KCI prepaid $2400 for a one-year insurance policy. Coverage began on January 1.

10-Jan On January 10, KCI sent invoices to customers amounting to $3500 for completed cleaning services.

15-Jan On January 15, KCI paid $2800 for employee salaries for work performed in January.

16-Jan On January 16, KCI collected $2625 from customers billed on January 10.

20-Jan On January 20, KCI collected $1,000 in advance from a customer for February cleaning services. 25-Jan On January 25, KCI makes a cash payment on truck note for $500.

31-Jan On January 31, KCI paid a cash dividend of $100.

For the above 10 transactions, Prepare the Monthly Journal Entries, Post to the General Ledger (T-Accounts), and Prepare an Unadjusted Trial Balance.

At the end of January, KCI analyzed the following transactions for which journal entries have not yet been prepared. 31-Jan An inventory count at the close of business on January 31 reveals that $550 of supplies are still on hand. 31-Jan Insurance of $200 expires each month. 31-Jan The truck has a useful life of 5 years (60 months) and has a salvage value of $2,000.

31-Jan Completed cleaning services for customers for a total of $5000, but have not yet sent out the invoices.

For the above four transactions, Prepare the Adjusting Journal Entries, Post to the General Ledger (T-Accounts), and Prepare an Adjusted Trial Balance.