Question 11 Cullumber Advisors Limited was organized on January 1, 2018. The company had the following transactions in the month of January: January 2 Issued 1,000 common shares for $68 each. 4 Finalized a lease for office space and paid the first month's rent of $3,100. 5 Purchased $39,000 of equipment for $9,000 cash and financed the remainder with a long-term bank loan. 8 Paid for an advertisement in a local paper, $480. 10 Purchased supplies on account, $1,100. 11 Paid for several advertising spots on the local radio station, $2,700. 12 Paid employees $8,300 for the first two weeks of work. 15 Summarized and recorded the billings to clients for the first two weeks of January. Billings totalled $16,500. These amounts are due by the 12th of the next month. 17 Paid $1,000 for office expenses. 19 Paid annual insurance policy with coverage up to December 31, 2018, for $6,400. 24 Received $10,600 from clients in partial settlement of accounts billed on the 15th. 25 Declared and paid $530 of dividends to shareholders. 26 Paid employees $8,300 for the previous two weeks of work. 29 Summarized and recorded the billings to clients for the prior two weeks. Billings totalled $17,300. These amounts are due by the 26th of the next month. 30 Made a payment to the bank of $180 for interest on the bank loan and $760 to pay on the amount owing for the bank loan. 31 Paid Canada Revenue Agency $1,300 for an income tax instalment. Journalize the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Record journal entries in the order presented in the problem.) Date Account Tities and Explanation Debit Credit |||| Set up T accounts and post the journal entries prepared in (a). (Post entries in the order of journal entries presented in the previous part.) Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Bank Loan Payable Common Shares Dividends Declared Service Revenue Advertising Expense Salaries Expense Interest Expense Office Expense Rent Expense Income Tax Expense Prepare a trial balance at January 31. CULLUMBER ADVISORS LIMITED Trial Balance Debit Credit Totals Prepare an income statement for January. CULLUMBER ADVISORS LIMITED Income Statement Prepare a statement of changes in equity for January. CULLUMBER ADVISORS LIMITED Statement of Changes in Equity Common Shares Retained Earnings Total Equity Prepare a statement of financial position for January. (List Current Assets in order of liquidity.) CULLUMBER ADVISORS LIMITED Statement of Financial Position Assets Liabilities and Shareholders' Equity