PREPARE AN ADJUSTED TRIAL BALANCE

TRANSACTIONS FOR JANUARY 2016 -----------------------

General Entries

Jan 5 Received $60,000 from Sophia Leon and issued 12,000 common shares of $5 par value.

5 Paid $6,000 of general liability and property insurance. The disbursement by Check No. 100 was for a complete year of service.

6 Rented an office and furniture for $2,000 per month. Issued Check NO. 101 for $6,000 representing the first and last months rent and the security deposit. (The security deposit, the last months rent and the current rent are to be classified separately.)

7 Issued Check N. 102 for $1.600 for the purchase of office supplies.

7 Issued Check No. 103 for $7,000 for advertising to be run in local newspapers and magazines in the month of January.

10 Roxanne Perkin engaged House of Style to renovate her oceanfront condominium. Received $10,000 from Roxana Perini after services were completed.

12 Recorded $6,000 (net 30) decorating fees earned on account from Maribel Thompson to remodel her office.

20 Received $8,000 from Fred Lambert, a customer. These fees were related to services rendered to improve his office lobby.

25 Recorded $12,000 (net 60) Decorating fees revenue earned on account from Robert Adrian, a longtime customer who wanted to enhance his residences dcor.

30 Issued Check No. 104 for $190 to pay the utilities bill for this month.

30 Issued Check No. 105 for $300 in payment of the telephone bill for the month.

30 Issued Check No. 106 for $200 for postage.

30 Issued Check No. 107 for $450 for business automobile expenses.

30 Issued Check No. 108 for $5,600 to Sophia Leon for salary. (Payroll taxes are not considered for this entry.)

Adjusting Entries

A. Expired insurance for the period, $500.

B. Supplies on hand as of the end of the month, $1,000.