Tar Heels Unlimited began business on January $1,2026.$ During January, the following transactions occurred:

January $1$ Issue common stock in exchange for $$100,000$ cash.

January $2$ Purchase inventory on account for $$35,000.$

January $4$ Pay an insurance company $$2,400$ for a $1-$year insurance policy.

January $10$ Sell inventory on account for $$12,000.$ The cost of the inventory was $$7,000.$

January $15$ Borrow $$30,000$ from a local bank and sign a note. Principal and interest at $10\%$ annual rate are to be repaid

in $6$ months.

January $20$ Pay employees $$6,000$ in salaries for the first half of the month.

January $22$ Sell inventory for $$10,000$ cash. The cost of the inventory was $$6,000.$

January $24$ Pay $$15,000$ to suppliers for the inventory purchased on January $2.$

January $26$ Collect $$6,000$ on account from customers.

January $28$ Pay $$1,000$ to the local utility company for January gas and electricity.

January $30$ Pay $$4,000$ rent for the building. Of this amount, $$2,000$ is for January rent and $$2,000$ is for February

rent. Prepaid Rent and Rent Expense are debited for their appropriate amounts.

Required:

Record each transaction.

Record adjusting entries for $($a$)1$ month of expired insurance related to January $4$ purchase, $($b$)0\mathrm{.}5$ month of interest owed

related to January $15$ borrowing, and $($c$)$ salaries payable at the end of January of $$6,000.$

Prepare an adjusted trial balance as of January $30,2026.$ All accounts had a balance of $$0$ at the beginning of January.

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Prepare an adjusted trial balance as of January $30,2026.$ All accounts had a balance of $$0$ at the beginning of January.