Prepare:

a) Balance Sheet as of January 31

b) Statement of Cash Flows for month ended January 31

Post-Closing Trial Balance December 31, 2XX1 Credit Debit 4,965 2,150 870 850 79,000 119,500 Cash Accounts receivable Supplies Prepaid rent Building Equipment Accumlated depreciation Accounts payable Utilities payable Salaries and wages payable income tax payable Notes payable Common stock Retained Earnings Total 37,500 5,875 710 2,235 5,890 31,400 95,000 28,725 207,335 207,335 January Transactions 1-Jan Performed car repair services and received cash at the time of sale, $4,350. 2-Jan Paid for the car parts purchased on account last year, $790. 4-Jan Paid wages and salaries for $2,575, part of which was accrued in December. 10-Jan Paid the utility bill that was already accrued in December in utilities payable. 16-Jan Collected cash from credit sales made last year, $1,800. Purchased $4,500 of equipment, paid $2,250 cash and issued a note for 20-Jan $2,250. 22-Jan Performed car repair services on account, $3,940. 27-Jan Paid dividends to the company's owners, $300. January Adjusting Entries 31-Jan The estimated depreciation on building and equipment is $770. 31-Jan One month of rent has expired, $850. 31-Jan The annual interest rate is 4% on all notes and paid quarterly. It was last paid on Dec 31 of the prior year. 31-Jan The supplies remaining at the end of the month was $680. 31-Jan Accrued wages and salaries worked in January that will be paid 2-4, $1,790. 31-Jan The estimated income taxes for the month is $655. Adjusted Trial Balance Credit $ $ $ Debit 4,490 4,290 680 $ 79,000 $ 124,000 Cash Accounts Receivable Supplies Prepaid Rent Building Equipment Accumlated Depreciation Accounts Payable Utilities Payable Salaries and Wages Payable Income Tax Payable Interest Payable Notes Payable Common Stock Retained Earnings Dividends Service Revenue Salaries and Wages Expense Rent Expense Supplies Expense Depreciation Expense Interest Expense Income Tax Expense $ 38,270 $ 5,085 S - $ 1,790 $ 6,545 $ 112 $ 33,650 $ 95,000 $ 28,725 S 300 $ 8,290 $ 2,130 $ 850 $ 190 5 770 S 112 $ 655 $ 217,467 $217,467 Income Statement $ 8,290 2,130 Revenue: Service Revenue Expenses: Salaries and Wages Expense Rent Expense Supplies Expense Depreciation Expense Interest Expense Income Tax Expense Dividends Total Expenses: 850 190 770 112 655 300 5,007 3,283