The following transactions were completed by B&A Sales & Service

1. The owner opens the checking account by making a deposit of $10,000 with his personal funds. (1-1-16)

2. Purchase a desk for the office of $1000. (1-5-16)

3. Purchase inventory to sell 5000. (1-5-16)

4. Paid rent $750. (1-5-16)

5. Purchase vehicle $8000 with a loan. (1-8-16)

6. Insurance paid $250. (1-10-16)

7. Equipment purchased $2600 with a loan. (1-15-16)

8. Cash sales $1500. (1-17-16)

9. Office supplies purchased $625. (1-20-16)

10. Utilities paid $175. (1-21-16)

11. Gas purchased $100. (1-23-16)

12. Paid employee $500. (1-27-16)

13. Owner drew out $1000. (1-31-16)

Instructions:

1. Record the journal entries in the ledger.

2. Post entries to the T-accounts

3. Prepare January financial statements

**Please use the ledger, t-account and financial statement forms provided for you here in the assignment topic box in Moodle.

Chart of Accounts

Cash Owners Equity Vehicle Expense

Inventory Owners Draw Utilities Expense

Furniture Sales

Equipment Rent Expense

Vehicles Insurance Expense

Loan Payable-Equipment Office Supplies Expense

Loan Payable-Vehicle Payroll Expense