This corporation sells office products and performs accounting services. S & B uses the Perpetual Inventory system and had the following balances:

S & B Office Supplies and Services, Trial Balance, January 1, 2020

Title	Debit	Credit
Cash	9,100
Accounts Receivable	2,240
Merchandise Inventory	1,800
Supplies	860
Equipment	23,000
Accumulated Depreciation		1,000
Accounts Payable		3,300
Unearned Service Revenue		3,800
Salaries and Wages Payable		1,700
Common Stock		20,000
Retained Earnings		7,200
Total	37,000	37,000

This is a simulated problem showing some summary transactions that occurred during the month of January.

Jan 2 Paid Januarys rent $400.

3 Purchased 4,000 units of inventory from dds Discount Supply on account at $0.72 each. Terms 2/10, n/30.

4 Sold 4,400 units of inventory for cash at $0.90 per unit. (Sold 3,000 of the 0.60 units and 1,400 of the $0.72 units)

9 Gave a January 4th customer $180 for 200 units returned costing $144. (These units were returned to inventory)

9 Received $2,000 cash from customers in payment on account. (December salesno discounts)

10 Paid $2,000 on account. (No discounts)

10 Paid $3,550 for salaries due employees, of which 1,850 is for January and $1,700 is for December 2019.

10 Paid dds Discount Supply in full, less discount. (Round to whole dollars)

13 Purchased 5,000 units of inventory on account Office Headquarters at $0.80 each. Terms 2/10, n/30.

15 Sold 4,000 units of inventory to customers on account at $0.95 per unit. Terms 2/10, n/30. (Sold 2,800 of the 0.72 units and 1,200 of the 0.80 units)

23 Received collections in full, less discount, from customers billed for sales on January 15th.

24 Paid Salaries $3,550.

27 Received $4,200 Cash for services performed in January.

28 Purchased supplies on account $1,500.

28 Paid Office Headquarters in full. (No discount)

30 Performed services on account and billed customers $900.

30 Received $675 from customers for services to be performed in the future.

Adjustment Data:

Supplies on hand are valued at $1,400.

Accrued salaries are $1,775.

Depreciation for the month is $250.

$575 of services related to the unearned service revenue has not been earned by month end.

Instructions: Enter the January 1, balances in ledger accounts. Journalize the January transactions. Post to the ledger accounts. HINT: You will need to add some accounts to the beginning ones available. Prepare a Trial Balance as of January 31st. Journalize the Adjusting Entries. Post the Adjusting Entries. Prepare an Adjusted Trial Balance at January 31, 2020. Journalize the Closing Entries (Do Not Post)