Please solve this accounting problem

Company History

Barry and Toni are well known and respected members of the local music scene. They play in a couple of local bands and independently offer music lessons to a diverse group of students. In 2020, the two friends decided to start a retail business selling musical instruments. They worked with the local office of the Small Business Development Center (SBDC) to conduct market research and came up with a realistic business strategy and plan. After a lot of hard work and advice from the center, the friends finally formed Baritone Music Inc. (Baritone). Barry and Toni are the only shareholders. Each owns 50% of the issued common stock in their business. Baritone rented a vacant store and started operations on January 1, 2021. The store was opened to the public on January 9, 2021.

Business Operations

Since both Barry and Toni are experienced string instrument players, they decided to initially stock and sell string instruments that they could confidently recommend to their customers. They planned to diversify their product offering within several months of operations depending on customer demand and the ability to hire a part time assistant knowledgeable in other instrument types. As a result, for the first two months of its operations Baritone carried a limited range of string instruments. The full set of is listed in the inventory section below.

Barry and Toni take turns staffing the store during business hours. Baritone also hired a part time employee, Violet Lynn to assist with some office and administrative duties. Violet recently retired as an office and administrative assistant at a local CPA firm. Her duties at Baritone include greeting walk-in customers, answering the phone, taking customer orders over the phone, and the recording of all transactions that the store has with its vendors and customers. Violet is also responsible for keeping record of all transactions and communication with Baritones accountants, Tom Bonn CPAs LLC.

Customer Base

The results of the market research suggested that Baritones customer base consisted of individuals, K12 and college music programs, private music studios, and non-profit groups that promote music literacy in the surrounding communities. Your Role Assume that you are a junior accounting major at the local college. Tom Bonn CPAs LLC, a firm that handles the accounting for Baritone, has recently hired you as an accounting intern after passing your Intermediate Accounting I course. Your supervisor has asked you to prepare the January 2021 financial statements for Baritone. You have been asked to ignore the income tax calculation which your supervisor will do. You are to use the additional information below and the list of transaction that follow which were compiled by Violet Lynn, the administrative assistant at Baritones.

Required

1. Prepare and record journal entries for the above transactions in the General Journal (GJ1)

2. Post the journal entries for the January transactions to the respective General Ledger Accounts (T-Accounts) below.

3. Prepare an Unadjusted Trial Balance as well as the Adjusted Trial Balance below.

4. Prepare an income statement, statement of stockholders equity, and balance sheet.

6. Prepare the closing entry on January 31, 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. After recording this closing entry, post the entry to General Ledger in Part (3).)

5. Prepare the Post-Closing Trial Balance as well as the Adjusted Trial Balance below.

Additional Details # Name Business type Accounting method Accounting period Baritone Music Inc. Retail Accrual Monthly January 1 to December 31 Perpetual Baritone Music Inc. follows US GAAP Fiscal year Inventory method used Accounting Policies Inventory of Instruments sold Item # OSACGT OSCLGT IBELBS IBELGT YAELBS YAACBS YAACGT Guitar Type Acoustic Guitar Classical Guitar Electric Bass Electric Guitar Electric Bass Acoustic Bass Acoustic Guitar Vendor Oscar Schmidt Oscar Schmidt Ibanez Ibanez Yamaha Yamaha Yamaha Cost $ 110 $ 105 $ 115 $ 110 $ 100 $ 90 $ 85 Sales Price $170 $165 $175 $180 $150 $140 $130 Major Customers Business Type Customer Name Ben & Jo Music Academy Harps College Music Department Louis Jazz Studio Employees Employee Name Pay Frequency Barry Cooper Monthly - $1,500 Toni Moore Monthly - $1,500 Violet Lyn - works 20 hrs per week Bi-weekly on Fridays - $15 per hour Chart of Accounts Account # 100 110 110-1 110-2 110-3 115 125 130 Account Titles Cash Accounts Receivable Control Accounts Receivable Subsidiary Accounts AR - Ben & Jo Music Academy AR - Harps College Music Department AR - Louis Jazz Studio Prepaid Rent Prepaid Insurance Inventory Control Account Inventory Subsidiary Accounts Inventory - Oscar Schmidt Inventory - Ibanez Inventory - Yamaha Accounts Payable Control Accounts Payable Subsidiary Accounts AP - Oscar Schmidt AP - Ibanez Musical AP - Yamaha Musical 130-1 130-2 130-3 210 210-1 210-2 210-3 220 230 240 250 260 Wages Payable Salaries Payable Income Taxes Payable Long-Term Notes Payable Utilities Payable 300 310 320 Common stock (8,000 shares, $0.50 par value) Additional paid-in capital Retained earnings 400 410 500 515 520 525 530 540 550 560 580 Sales Revenue Sales Returns and Allowances Cost of Goods Sold Rent Expense Wages expense Insurance Expense Salaries Expense Income tax expense Interest expense Utilities Expense Miscellaneous Expenses Transactions during January 2021 * Date January 1 January 1 January 1 January 1 Transaction Barry and Toni each contributed $24,000.00 to the business in exchange for a total of 12,000 shares of capital stock. The par value of the shares is $0.50. Baritone paid $3,000.00 for the first month's rent. Baritone paid $1,200.00 to an insurance company for the first year. Baritone placed the following orders for guitars: 20 OSACGT Acoustic Guitars for $ 110 each 10 OSCLGT Classical Guitars for $ 105 each 12 IBELBS Electric Bass for $ 115 each 10 IBELGT Electric Guitar for $ 110 each 8 YAELBS Electric Bass for $ 100 each 8 YAACBS Acoustic Bass for $ 90 each 10 YAACGT Acoustic Guitar for $ 85 each January 5 All items from Oscar Schmidt were received in good order. Payment is due within 30 days. January 6 All items from Ibanez were received were received in good order. Payment is due within 30 days. January 6 All items from Yamaha were received in good order. Payment is due within 30 days. January 9 Sold the following guitars to various walk in cash customers: 5 OSACGT Acoustic Guitars for $ 170 each 2 OSCLGT Classical Guitars for $ 165 each 4 IBELBS Electric Bass for $ 175 each 1 IBELGT Electric Guitar for $ 180 each 2 YAACBS Acoustic Bass for $ 140 each January 12 Sold on account the following guitars to Ben & Jo Music Academy: 1 OSACGT Acoustic Guitar for $ 170 each 2 OSCLGT Classical Guitars for $ 165 each 1 IBELBS Electric Bass for $ 175 each 2 YAACBS Acoustic Bass for $ 140 each January 13 Baritone sold the following guitars to various walk-in cash customers: 1 IBELBS Electric Bass for $ 175 each 1 IBELGT Electric Guitar for $ 180 each 1 YAACBS Acoustic Bass for $ 140 each January 14 A customer returned and got a refund for 1 OSACFS Acoustic Guitar that had been purchased on January 9 for $170 each. The guitar was still in perfect condition and could still be resold at the same price. January 15 Paid bi-weekly wages to Violet Lynn for 40 hours worked January 16 Sold the following guitars to various walk in cash customers: 3 OSACGT Acoustic Guitars for $ 170 each 2 OSCLGT Classical Guitars for $ 165 each 2 IBELBS Electric Bass for $ 175 each 1 IBELGT Electric Guitar for $ 180 each 2 YAACBS Acoustic Bass for $ 140 each January 19 Sold on account the following guitars to Harps College Music Department: 2 OSACGT Acoustic Guitars for $ 170 each 2 OSCLFS Classical Guitars for $ 165 each 2 IBELBS Electric Bass for $ 175 each 2 YAELBS Electric Bass for $ 150 each 2 YAACGT Acoustic Guitar for $ 130 each January 20 Baritone placed the following orders for guitars: 10 OSACGT Acoustic Guitars for $ 110 each 10 OSCLGT Classical Guitars for $ 105 each 10 IBELBS Electric Bass for $ 115 each 3 IBELGT Electric Guitar for $ 110 each 4 YAELBS Electric Bass for $ 100 each 8 YAACBS Acoustic Bass for $ 90 each 6 YAACGT Acoustic Guitar for $ 85 each January 21 January 21 Baritone collected one half of the accounts receivable owed by Ben & Jo Music Academy for the January 12 sale. There are no discounts offered for early payment. Baritone Sold the following guitars to various walk-in cash customers: 2 OSACGT Acoustic Guitars for $ 170 each 2 IBELGT Electric Guitar for $ 180 each 3 YAACGT Acoustic Guitars for $ 130 each January 23 Baritone Sold the following guitars to various walk-in cash customers: 3 OSACGT Acoustic Guitars for $ 170 each 2 IBELGT Electric Guitar for $ 180 each 2 YAELBS Electric Bass for $ 150 each 2 YAACGT Acoustic Guitar for $ 130 each Paid bi-weekly wages to Violet Lynn for 40 hours worked Paid monthly salaries for Barry and Toni Accrued utilities expense for January at an estimated amount of $600.00. Utility bill has not yet been received. Payment will be made in February. January 29 January 30