The January 1 balance sheet of the Marvin Company, an unincorporated business, is as follows:

MARVIN COMPANY

Balance Sheet

As of January 1

Assets Liabilities and Owner's Equity

_______________________________________________________________

Cash $25,000 Notes Payable $20,000

Inventory 50,000 Capital 55,000

Total $75,000 total: $75,000

The following transactions took place in January

Jan 4 Merchandise was sold for $12,000 cash that had cost $7000

Jan 6 To increase inventory, Marvin place an order with Star Company for merchandise that would cost $7000

Jan 8 Marvin receive the merchandise ordered from Star and agreed to pay the $7000 in 30 days.

Jan 11 Merchandise costs $1500 was sold for $2500 in cash

Jan 16 Merchandise costing $2000 was sold for $3400 on 30 day open account

Jan 26 Marvin paid employees for the month $4200 in cash

Purchased Land for $20,000 in cash

Marvin purchase a two year insurance policy for $2800 in case.

Required:

Describe the impact of each transaction on the balance sheet, and prepare an example of new balance sheet as of January 31.