RU Ready Incorporated began operations at the beginning of January 2011. The company maintains its inventory balances using the perpetual method, using FIFO.

A. Journalize each of the January transactions in debit/credit form, if no entry is required, list no entry B. Post January entries in T accounts

C. Prepare a Trial Balance as of 1/31/11

D. Record any necessary adjusting entries

E. Prepare an Adjusted Trial Balance as of 1/31/11

F. Prepare a Balance Sheet, Statement of Retained Earnings, and Income Statement.

January Transactions

1) Owners invest $105,000 at the beginning of January. 15,000 shares of $3 par Common Stock are issued.

2) A $50,000 bank loan at 9% annual interest is obtained on January 1.

3) 200 units of inventory are purchased for $15,000 on account.

4) Supplies are purchased for internal use for $900 cash.

5) Insurance is paid for a three month coverage period Jan-March for $1,500.

6) Rent of $2,000 is paid for a two month period beginning in January.

7) Office furniture is purchased on January 31 for $30,000 cash. The furniture will be depreciated straight-line over 5 years with depreciation charged monthly. Its expected salvage value is $6,000.

8) 150 units of inventory are sold for $200 each, for cash and on account.

9) A customer places an order and pays $200 per unit in advance for 50 units of inventory to be delivered in February.

10) An additional 200 units of inventory are purchased for $16,000 cash.

11) A van is purchased on January 1 for $22,000 cash and is expected to be used for 3 years. RU Ready Inc. will use straight-line depreciation for this asset. Its salvage value is expected to be $4,000.