The January 1, 2017, balance sheet for Bullous Documents Company (BDC), a professional corporation, was as follows:

The following transactions and other economic events took place during the month ending January 31, 2017.

a) Purchased supplies on account, $22,200.

b) Paid the $1,750 interest accrued on notes payable at the end of 2016.

c) Completed work and billed the client $183,000.

d) Paid salaries totaling $124,000. This amount includes salaries accrued at the end of 2016.

e) Cash collections from customers, $127,600.

f) Wrote off a customers account of $1,800 as uncollectible.

g) Made payment on accounts payable of $18,600.

h) Paid salaries totaling $124,000.

i) Completed work and billed the client $179,000.

j) Cash collections from customers, $110,600.

k) Declared a cash dividend of $13,000 to be paid in February 2017.

Required:

1. Open T-accounts and enter the beginning balance sheet information.

2. Record the January transactions in general journal form using letters in place of dates.

3. Post the journal entries to the T-accounts.

4. Prepare a trial balance.

5. Prepare adjusting entries in general journal form. Information for adjustments:

a) Bad debt expense is estimated to be 3% of revenue. b) Supplies remaining, $4,850. c) Depreciation expense, $11,200 for building, $1,300 for furniture, and $1,900 for equipment. d) Salaries accrued, end of the month, $11,440. e) Interest accrued on notes payable, $1,750. f) Unpaid utility bills, $1,560.

6. Post the adjusting entries to the T-accounts.

7. Prepare an adjusted trial balance.

8. Prepare an Income Statement, a Retained Earnings Statement, and a Balance Sheet.

9. Prepare closing entries.

10. Post closing entries.

11. Prepare a post-closing trial balance.

LIABILITIES AND ASSETS STOCKHOLDERS' EQUITY Current Assets: Current Liabilities: $118,450 Cash 133,000 Accounts Payable $131,500 Accounts Receivable Salaries Payable 1,900 Less: Allowance for Doubtful Interest Payable 1,750 (12.100) 19.400 Accounts Supplies 15,850 Total Current Liabilities 122,100 Total Current Assets 268,250 Notes Payable 145,000 Total Liabilities 267,100 Non-Current Assets: Land 149,500 Stockholders' Equity: Building 1,100,000 1,220,000 Capital Stock 182,400 Less: Accumulated Depreciation (197,500) 1,022,500 Retained Earnings 114,600 Total Stockholders' Equity 1,282,400 Furniture Less: Accumulated Depreciation (12,100) 102,500 18,350 Equipment Less: Accumulated Depreciation 11,600 6,750 Total Non-Current Assets 1,281,250 Total Liabilities and $1,549,500 Stockholders' Equity $1,549,500 Total Assets