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. (1-1-18)
2. Purchase a desk for the office of $1000. (1-5-18)
3. Purchase inventory to sell $5000. (1-5-18)
4. Paid rent $750. (1-5-18)
5. Purchase vehicle $8000 with a loan. (1-8-18)
6. Insurance paid $250. (1-10-18)
7. Equipment purchased $2600 with a loan. (1-15-18)
8. Cash sales $1500. (1-17-18)
9. Cost of Goods sold for entry #8 is $900 (1-17-18)
10. Office supplies purchased $625. (1-20-18)
11. Utilities paid $175. (1-21-18)
12. Gas purchased $100. (1-23-18)
13. Paid employee $500. (1-27-18)
14. Owner drew out $1000. (1-31-18)

Instructions:

1. Record the journal entries in the ledger.
2. Post entries to the T-accounts
3. Prepare January financial statements (Balance Sheet, Income Statement, Statement of Owner's Equity)

**Please explain all answers if possible.

Chart of Accounts

Cash Owners Equity Vehicle Expense

Inventory Owners Draw Utilities Expense

Furniture Sales Payroll Expense

Equipment Cost of Goods Sold

Vehicles Rent Expense

Loan Payable-Equipment Insurance Expense

Loan Payable-Vehicle Office Supplies Expense