Steps for

Date

$1$ Owners invest $$25,000$ of additional cash in the business.

$2$a Supplies are purchased for $$900$ on account.

$2$b Insurance is paid for $12$ months beginning January $1$: $$7,320($Record as an asset$)$

$2$c Rent is paid for $3$ months beginning in January: $$3,600($Record as an asset$)$

$2$d Two employees are hired. Each employee will be paid $$1,360$ per month

$3$ FFD borrows $$28,000$ from $1^{st}$ State Bank at $6\%$ annual interest.

A delivery van is purchased for cash. Including tax the total cost was $$45,600.$ It

$6$ will be used for $4$ years and will be depreciated monthly using straight$-$line with

no salvage value. A full month of depreciation will be charged in January.

$7$$$595$ of the receivables from December's sales are collected.

$8$$$688$ of the accounts payable from December are paid.

$9$ Performed services for customers on account. Mailed invoices totaling $$9,600.$

$10$ Services are performed for cash customers: $$6,720.$

$16$ Wages for the first half of the month are paid on January $16$: $$1,360.$

$20$ The company receives $$3,200$ from a customer for an advance order for services

$20$ to be provided in January and February.

$25$ Collections from customers on account $($see January $9$ transaction$)$: $$3,840$

$30$a The last $2$ weeks wages earned by employees are $$680$ per employee and will

$30$b A $$860$ utility bill for January arrived. It is due on February $15.$

Additional Information for adjusting entries at January $31$:

a$.$ Supplies on hand on January $31$ total $$310.$

b$.$ The company completed $60\%$ of the deliveries for the customer who paid in advance

on January $20.$

c$.$ Interest is accrued for the bank loan. $($Assume a full month for the $1^{st}$ State Bank loan.$)$

d$.$ Record January depreciation.

e$.$ Adjust the prepaid asset $($Rent and Insurance$)$ accounts as needed.

Prepare end$-$of$-$January financial statements. $($Balance Sheet only, items to be

deducted must be indicated with a negative amount.$)$