This project will give you an opportunity to apply your knowledge of accounting principles and procedures by handling all the accounting work of Eli$$s Consulting Services for the month of January $20$X$2.$

Assume that you are the chief accountant for Eli$$s Consulting Services. During January, the business will use the same types of records and procedures that you learned about in Chapters $1$ through $6.$ The chart of accounts for Eli$$s Consulting Services has been expanded to include a few new accounts. Follow the instructions on the Requirements tab to complete the accounting records for the month of January.

DATE TRANSACTIONS

January $2$ Purchased supplies for $$14,000$; issued Check $1015.$

January $2$ Purchased a one$-$year insurance policy for $$16,800.$

January $7$ Sold services for $$30,000$ in cash and $$20,000$ on credit during the first week of January.

January $12$ Collected a total of $$8,000$ on account from credit customers during the first week of January.

January $12$ Issued Check $1017$ for $$7,200$ to pay for special promotional advertising to new businesses on the local radio station during the month.

January $13$ Collected a total of $$9,000$ on account from credit customers during the second week of January.

January $14$ Returned supplies that were damaged for a cash refund of $$1,500.$

January $15$ Sold services for $$41,400$ in cash and $$4,600$ on credit during the second week of January.

January $20$ Purchased supplies for $$10,000$ from White$$s$,$ Incorporated; received Invoice $2384$ payable in $30$ days.

January $20$ Sold services for $$25,000$ in cash and $$7,000$ on credit during the third week of January.

January $20$ Collected a total of $$11,200$ on account from credit customers during the third week of January.

January $21$ Issued Check $1018$ for $$14,130$ to pay for maintenance work on the office equipment.

January $22$ Issued Check $1019$ for $$7,200$ to pay for special promotional advertising to new businesses in the local newspaper.

January $23$ Received the monthly telephone bill for $$2,050$ and paid it with Check $1020.$

January $26$ Collected a total of $$3,200$ on account from credit customers during the fourth week of January.

January $27$ Issued Check $1021$ for $$6,000$ to Office Plus as payment on account for Invoice $2223.$

January $28$ Sent Check $1022$ for $$5,350$ in payment of the monthly bill for utilities.

January $29$ Sold services for $$38,000$ in cash and $$5,500$ on credit during the fourth week of January.

January $31$ Issued Checks $10231027$ for $$65,600$ to pay the monthly salaries of the regular employees and three part$-$time workers.

January $31$ Issued Check $1028$ for $$24,000$ for personal use.

January $31$ Issued Check $1029$ for $$8,300$ to pay for maintenance services for the month.

January $31$ Purchased additional equipment for $$30,000$ from Contemporary Equipment Company; issued Check $1030$ for $$20,000$ and bought the rest on credit. The equipment has a five$-$year life and no salvage value.

January $31$ Sold services for $$15,200$ in cash and $$3,240$ on credit on January $31.$

ADJUSTMENTS

January $31$ Compute and record the adjustment for supplies used during the month. An inventory taken on January $31$ showed supplies of $$9,400$ on hand.

January $31$ Compute and record the adjustment for expired insurance for the month.

January $31$ Record the adjustment for one month of expired rent of $$4,000.$

January $31$ Record the adjustment for depreciation of $$183$ on the old equipment for the month. The first adjustment for depreciation for the new equipment will be recorded in February.

Required:

General Ledger tab: Enter the account balances for January $1,20$X$2$ from the postclosing trial balance prepared on December $31,20$X$1,$ which appears in Figure $6\mathrm{.}3.$

General Journal tab: Analyze each of the transactions listed for January and record it in the general journal.

General Ledger tab: Post the transactions to the general ledger accounts.

Worksheet tab: Prepare the Trial Balance section of the worksheet.

Worksheet tab: Prepare the Adjustments section of the worksheet using the adjusting transactions.

Worksheet tab: Complete the worksheet.

Income Statement tab: Prepare an income statement for the month.

Statement of Owner's Equity tab: Prepare a statement of owner$$s equity.

Balance Sheet tab: Prepare a balance sheet.

Adjusting and Closing tab: Record the adjusting entries and the closing entries in the general journal.

General Ledger tab: Post the adjusting entries and the closing entries to the general ledger accounts.

Post Closing tab: Prepare a postclosing trial balance.

Analyze:

Answer the questions on the Analyze tab to compare the January $31$ balance sheet you prepared with the December $31$ balance sheet shown in Figure $6\mathrm{.}4.$

FIGURE $6\mathrm{.}4$ End$-$of$-$Month Financial Statements

Eli$$s Consulting Services

Income Statement

Month Ended December $31,20$X$1$

Revenue

Fees Income $ $47,000\mathrm{.}00$

Expenses

Salaries Expense $ $8,000\mathrm{.}00$

Utilities Expense $650\mathrm{.}00$

Supplies Expense $500\mathrm{.}00$

Rent Expense $4,000\mathrm{.}00$

Depreciation Expense$$Equipment $183\mathrm{.}00$

Total Expenses $13,333\mathrm{.}00$

Net Income