Please Journalize the following events. The company only pays federal taxes at a rate of 40% on all profits.

Jan. 1: Company began on 1/1/2017 with the sale of stock to owners for $250,000.

Jan. 1: Purchased equipment for $22,500 cash. Equipment has a 4 year life, $2,000 residual value, and is depreciated using the double declining balance (DDB) method.

Jan. 2: Hired an employee who will make $1,000/month. She will be paid on the 1^st of every month.

Jan. 3: Signed a note payable at the local bank for $50,000. The note is due in 1 year and the interest rate is 10% per year, payable at the due date, January 2, 2018.

Jan. 4: Purchased a two-year insurance policy for $4,800.

Jan. 4: Purchased a land and building for $100,000. The land is worth 10% of the total purchase price. The building has a salvage value of $10,000, is expected to last 40 years, and is depreciated on a straight-line basis.

Jan. 5: Purchased $1,000 of supplies.

Jan. 6: Purchased 10 inventory items on credit for $300 each (with terms 1/5, n/30).

Jan. 9: Returned 1 inventory item.

Jan. 10: Sold 2 inventory items on credit for $900 total (with terms 2/10, n/30). Deacon Inc. uses perpetual LIFO to assign costs to the goods sold.

Jan. 10: Paid for the inventory purchased on Jan. 6.

Jan. 15: Accepted a return from a customer for 1 item sold on Jan. 10.

Jan. 18: Received payment from the customer for the Jan. 10 sale.

Jan. 20: Purchased 5 inventory items on credit for $305 each (with terms 1/5, n/30).

Jan. 25: Sold 6 inventory items on credit for $450 each (with terms 2/10, n/30).

Jan. 28: A customer paid $800 cash for a custom order that will not be in until February 15. The cost of the inventory will be $600.

Jan. 31: The end of the month requires financial statements. Record any entries from above that require accrual. (Note: Deacon Inc. estimates that 1% of the $3,600 in credit sales will not be collected.) Also, supplies on hand at the end of the month were $600.

After making the entries, determine how much total income or loss Deacon will report for Jan.:

$ __________________ Income OR Loss