The example transactions 1-10 journal entries were already recorded prior to the beginning of the Project: See page 6 of Assignment.

1 1/1/2022 Sells $15,000 of Common Stock to shareholders for cash

2 1/1/2022 Signs a 4-month lease. Rent is $500 due the first week of each month and pays the rent for the month of January

3 1/1/2022 Takes out a 5-year, $5,000 loan from MT Bank with 6% interest due monthly

4 1/1/2022 Purchases supplies worth $250 for cash

5 1/1/2022 Purchases equipment worth $3,000 for cash with 4-month useful life

6 1/2/2022 Purchases 100 units of inventory, on account, for $5,000 ($50 per unit)

7 1/4/2022 Provides services for $1,500

8 1/6/2022 Sells $10,000 of Common Stock to shareholders for cash

9 1/9/2022 Purchases 100 units of inventory, on account, for $5,000 ($50 per unit)

10 1/10/2022 Provides services for $3,000

*You need to post the example transaction's journal entries debit and credit entries into the beginning balances of the general ledger T accounts OR

Take the balances already posted in the financial statements for the example transactions 1-10 and post those to the beginning balances of the General Ledger Accounts.

Accounting Cycle Project Transactions to hand record for Submission Part #1

THE REMAINING TRANSACTIONS NEED TO BE JOURNALIZED AND POSTED TO THE GENERAL LEDGER T ACCOUNTS

Accounting Cycle Project Transactions (1-31)

1/31/2022 Company pays its supplier for inventory purchased on 1/2/2022

1/31/2022 Company provides services worth $5,000 and is paid in cash

1/31/2022 Company employees earn $20,000 salaries in the month of January to be paid in February (CORRECTED)

1/31/2022 Company purchases a building using a note payable for $480,000 at 5.00% annual interest and Orca Company puts $15,000 down

Accounting Cycle Project January Month-end Adjusting Entries Transactions (1/31) (see adjusting Entry Power Point)

1/31/2022 Supplies had a zero balance at the end of January

1/31/2022 Recorded rent expense for the month of January that was paid for on January 1

1/31/2022 Adjust for Interest Accrued on 5-year, $5,000 loan from MT Bank with 6% interest due monthly made on January 1st

Enter Closing Entries (1/31) (see power point-Demo only)

JANUARY CLOSING ENTRIES ARE NOT JOURNALIZED AND POSTED - THE CLOSING ENTRIES FOR JANUARY THAT ARE SHARED IN CLASS ARE INFORMATIONAL ONLY AS IF JANUARY WAS THE END REPORTING PERIOD- WE DO NOT ACTUALLY JOURNALIZE AND POST THE CLOSING ENTRIES EACH MONTH AS THIS WOULD ZERO OUT THE TEMPORARY ACCOUNT BALANCES THAT ARE NEEDED TO COMPLETE THE INCOME STATEMENT FOR EACH SUBMISSION. THE FINAL SUBMISSION WILL INCLUDE THE CLOSING JOURNAL ENTRIES

Format for Closing Entries:

1/31 Debit all Revenue accounts for their balance as of January 31

Credit Retained earnings for the total of all Revenue account balances debited

1/31 Debit Retained Earnings for the total of all expense account balances credited

Credit each expense account for their balance as of January 31.

Accounting Cycle Project Transactions (2-2)

2/2/2022 Schedules a service to be performed later, but receives the $3,000 on 2/2/2022

2/2/2022 Pays the supplier for inventory purchased on 1/9

2/2/2022 Pays Employee Salaries of $20,000 for month of January

2/2/2022 Pays for its January utilities which cost $1,750

2/2/2022 Pays rent for February

Accounting Cycle Project Transactions (2-4)

2/4/2022 Provides services to a customer worth $16,000. The customer pays for half of the service now and the rest is on account

2/4/2022 Purchases liability insurance for its business starting in February at $12,000 for the year. Note all $12,000 is paid immediately

2/4/2022 Purchases $2,000 of supplies, on account. The supplies purchased on 1/1 have all been used

2/4/2022 Purchases a $30,000 equity stake (investment) in a start-up company

Accounting Cycle Project Transactions (2/7)

2/7/2022 Sells Common Stock for $50,000

2/7/2022 Provides Services to Customers worth $10,000 and is paid in cash

2/7/2022 Purchases new advertisements for $4,400

2/7/2022 Pays for supplies purchased on 2/4

2/7/2022 Provides the services to customers scheduled on 2/2

2/7/2022 A customer approaches Orca Company and requests a service worth $6,000. The customer pays Orca Company $2,000 now and will pay the other $4,000 once the service is provided.