The company had the following transactions during January.

Jan. 1 The Company sold shares of common stock for $30,000 cash.

Jan. 1 The Company purchased a one-year insurance policy for $300 in cash.

Jan. 1 The Company purchased office equipment costing $8,000 by signing a 6% note due in two years. The Equipment has a 5 year life.

Jan. 10 The Company purchased $735 of office supplies for cash.

Jan. 15 The Company purchased a trademark for 4,000 cash.

Jan. 29 The Company billed customers $5,500 for consulting services performed.

Jan. 31 The Company paid $1,450 for employees salary.

Jan. 31 Since the company had a good month Palmer declared a $1,000 dividend to be paid on February 10th.

Additional Information:

On January 31^st, the company took an inventory of the supplies and found that they had $500 of supplies on hand.

Buildings and Equipment purchased before the 15^th of the month are depreciated for a whole month using the straight-line method.

On February 3^rd received the January utilities bill for $188.

REQUIRED:

a. Journalize the transactions

b. Prepare the adjusting entries

c. Post all entries to the accounts

d. Prepare a single-step income statement, retained earnings statement and a Classified Balance Sheet for the first month of operations

e. Prepare closing entries

HINTS:

Total assets = $41,657

Net Income = $3,429