Record adjusting entries for the month of January.

Operalions immediately by purchasing the assets and taking over the location of Rent-It, ciew company was able to begin an equipment rental company that was going out of business. The company closes its accounts and prepares financial statements at the end of the each month. During January the company entered into the following transactions January 1: Xavier and Brianne opened a business each contributing $90,000 cash to the company and receiving Capital Stock for their investment. January 1: Purchased for S570,000 all of the equipment formerly owned by Rent-It. Paid S70,000 cash and issued a one-year note payable for $500,000, plus interest at the annual rate of 6%. January 1: Paid $72,000 to Santos Realty for one year's advance rent on the rental yard and office formerly occupied by Rent-It. January 4: Purchased office supplies on account from Modern Office Co., $2,250. Payment due in 30 days. (These supplies are expected to last for several months). January 8: Received $20,000 cash as advance payment on equipment rental from McBryan Construction Company. January 12: Paid salaries for the first two weeks in January, $7,200. Excluding the McBryan advance, equipment rental fees earned during the first 15 days of January amounted to $22,000, of which $7,700 was received in cash. January 15: Purchased on account from Earth Movers, Inc., $640 in parts needed to repair a rental tractor which was completed on January 18th. Payment is due in 10 days. January 17: January 23: January 26: January 27: January 28: Collected S11,200 of the accounts receivable recorded on January 15. Paid biweekly salaries, $7,600. Paid the account payable to Earth Movers, Inc., $640. Paid a distribution of $2,500 to the owners. (Each owner received $1,250). Rented a backhoe to Mission Landscaping at a price of $100 per day. Mission paid $500 down with the balance to be paid when the backhoe is January 29