Red Hot Chili Peppers Limited (RHCP) is a corporation that manages a local rock band. RHCP was formed with an investment of $10,000 cash, paid by the leader of the band in exchange for shares of the corporation on January 3.

On January 4, RHCP purchased music equipment by paying $1,600 in cash and signing a promissory note to pay the remaining $8,000 in three years. The equipment should last for 8 years, at which point it will no longer be useful and will be replaced. The promissory note is subject to 9% interest per year, paid annually.

On January 5, RHCP was booked to have the band perform at six concerts, at a price of $2,500 each. Four of these concerts were performed between January 10 and January 20. On January 22, cash was collected for three of these four concerts. The other two concerts are scheduled in February. On January 24, RHCP collected half of the fee for one of the other two concerts.

On January 27, RHCP paid $3,140 cash for the bands travel-related costs. On January 28, RHCP paid its band members a total of $2,400 cash for the wages related to performing at the first three concerts. As of January 31, the band members hadnt yet been paid wages for the fourth event completed in January; however, they will be paid in February at the same rate as the first three concerts.

RHCP pays tax at a rate of 15% on its income before tax.

Required: Record all transactions, economic events and any applicable adjustments for the month of January for RHCP. You can do this using a table in the format of the accounting equation (i.e. Assets = Liabilities + Owners Equity) or, if you prefer, using journal entries.