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 ont credit during the second week of January. 20 Purchased supplies for $10,000 from White's, Inc. 1 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 bili 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 1023-1027 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 band. 11 Compute and record the adjustment for expired insurance for the month. 31 Becord 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 ELI'S CONSULTING SERVICES Postclosing Trial Balance December 31, 20X2 Account Name Debit Credit Compare the January 31 balance sheet you prepared with the December 31 balance sheet shown in Figure 6.4. 1. What changes occurred in total assets, liabilities, and the owner's ending capital? 2. What changes occurred in the Cash and Accounts Receivable accounts? 3. Has there been an improvement in the firm's financial position? Show less Amount 1. Total assets Total liabilities Owner's capital 2. Cash Accounts receivable 3. Firm's financial position Ell's Consulting Services Income Statement Month Ended December 31, 20X1 47100 000 Revenue Fees Income Expenses Salonies Expense Utilities Expense Supplies Experise Rent Expense Depreciation Expense-Equipment Total Expenses Net Income for the Month 800 000 650 00 50 000 400 000 1 8300 1333 300 331667100 Ell's Consulting Services Statement of Owner's Equity Month Ended December 31, 20X1 100 0 0 0 00 33 6 6 7100 500 000 Troyton Ell, Capitol December 20X1 Net Income for December Less Withdrawals for December Increase in Capital Troyton El, Capital, December 31, 20X1 28 6 67 00 128 66 700 Ell's Consulting Services Balance Sheet December 31, 20x1 Assets Cash Accounts Receivable Supplies Prepold Rent Equipment Less Accumulated Depreciation Total Assets 1713 50 00 500 000 100 000 400 000 11100 000 1 8 3 00 1018 17.00 1321 67 00 350 000 Lobioties and Owners Equity Liabilities Accounts Payable Owner's Equity Troyton El Capitol Total Lities and Owners Equity 128 66 700 13276700 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 ont credit during the second week of January. 20 Purchased supplies for $10,000 from White's, Inc. 1 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 bili 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 1023-1027 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 band. 11 Compute and record the adjustment for expired insurance for the month. 31 Becord 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 ELI'S CONSULTING SERVICES Postclosing Trial Balance December 31, 20X2 Account Name Debit Credit Compare the January 31 balance sheet you prepared with the December 31 balance sheet shown in Figure 6.4. 1. What changes occurred in total assets, liabilities, and the owner's ending capital? 2. What changes occurred in the Cash and Accounts Receivable accounts? 3. Has there been an improvement in the firm's financial position? Show less Amount 1. Total assets Total liabilities Owner's capital 2. Cash Accounts receivable 3. Firm's financial position Ell's Consulting Services Income Statement Month Ended December 31, 20X1 47100 000 Revenue Fees Income Expenses Salonies Expense Utilities Expense Supplies Experise Rent Expense Depreciation Expense-Equipment Total Expenses Net Income for the Month 800 000 650 00 50 000 400 000 1 8300 1333 300 331667100 Ell's Consulting Services Statement of Owner's Equity Month Ended December 31, 20X1 100 0 0 0 00 33 6 6 7100 500 000 Troyton Ell, Capitol December 20X1 Net Income for December Less Withdrawals for December Increase in Capital Troyton El, Capital, December 31, 20X1 28 6 67 00 128 66 700 Ell's Consulting Services Balance Sheet December 31, 20x1 Assets Cash Accounts Receivable Supplies Prepold Rent Equipment Less Accumulated Depreciation Total Assets 1713 50 00 500 000 100 000 400 000 11100 000 1 8 3 00 1018 17.00 1321 67 00 350 000 Lobioties and Owners Equity Liabilities Accounts Payable Owner's Equity Troyton El Capitol Total Lities and Owners Equity 128 66 700 13276700