This project will give you an opportunity to apply your knowledge of accounting principles and procedures by handling all the accounting work of Elis Consulting Services for the month of January 2020.

Assume that you are the chief accountant for Elis 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 Elis 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
Jan.	2	Purchased supplies for $14,000; issued Check 1015.
	2	Purchased a one-year insurance policy for $16,800.
	7	Sold services for $30,000 in cash and $20,000 on credit during the first week of January.
	12	Collected a total of $8,000 on account from credit customers during the first week of 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.
	13	Collected a total of $9,000 on account from credit customers during the second week of January.
	14	Returned supplies that were damaged for a cash refund of $1,500.
	15	Sold services for $41,400 in cash and $4,600 on credit during the second week of January.
	20	Purchased supplies for $10,000 from Whites, Inc.; received Invoice 2384 payable in 30 days.
	20	Sold services for $25,000 in cash and $7,000 on credit during the third week of January.
	20	Collected a total of $11,200 on account from credit customers during the third week of January.
	21	Issued Check 1018 for $14,130 to pay for maintenance work on the office equipment.
	22	Issued Check 1019 for $7,200 to pay for special promotional advertising to new businesses in the local newspaper.
	23	Received the monthly telephone bill for $2,050 and paid it with Check 1020.
	26	Collected a total of $3,200 on account from credit customers during the fourth week of January.
	27	Issued Check 1021 for $6,000 to Office Plus as payment on account for Invoice 2223.
	28	Sent Check 1022 for $5,350 in payment of the monthly bill for utilities.
	29	Sold services for $38,000 in cash and $5,500 on credit during the fourth week of January.
	31	Issued Checks 10231027 for $65,600 to pay the monthly salaries of the regular employees and three part-time workers.
	31	Issued Check 1028 for $24,000 for personal use.
	31	Issued Check 1029 for $8,300 to pay for maintenance services for the month.
	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.
	31	Sold services for $15,200 in cash and $3,240 on credit on January 31.
		ADJUSTMENTS
	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.
	31	Compute and record the adjustment for expired insurance for the month.
	31	Record the adjustment for one month of expired rent of $4,000.
	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:

Figure 6.3

1. General Ledger tab: Enter the account balances for January 1, 20X2 from the postclosing trial balance prepared on December 31, 20X1, which appears in Figure 6.3.
2. General Journal tab: Analyze each of the transactions listed for January and record it in the general journal.
3. General Ledger tab: Post the transactions to the general ledger accounts.
4. Worksheet tab: Prepare the Trial Balance section of the worksheet.
5. Worksheet tab: Prepare the Adjustments section of the worksheet using the adjusting transactions.
6. Worksheet tab: Complete the worksheet.
7. Income Statement tab: Prepare an income statement for the month.
8. Stmt of OE tab: Prepare a statement of owners equity.
9. Balance Sheet tab: Prepare a balance sheet.
10. Adjusting and Closing tab: Record the adjusting entries and the closing entries in the general journal.
11. General Ledger tab: Post the adjusting entries and the closing entries to the general ledger accounts.
12. 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 6.4.

Eli's Consulting Services Postclosing Trial Balance December 31, 20X1 CREDIT ACCOUNT NAME Cash Accounts Receivable Supplies Prepaid Rent Equipment Accumulated Depreciation-Equipment Accounts Payable Trayton Eli, Capital Totals DEBIT 111 35 000 500 000 1 000 00 400000 110 00 00 1 8 3 00 3 5 0 0 00 128 6 6 7 00 13235 000 132 35 000