TRANSACTIONS January 2 Pedro Hernandez invested $20,000 to start an advertising agency January 2 Rented an office, paying two months' rent in advance, $800 January 3 Ordered art supplies, $1,800, and office supplies, $800 January 4 Purchased art equipment for $4,200 cash January 5 Purchased office equipment from Baskwell Equipment for $3,000, paying $1,500 in cash and agreeing to pay the rest next month January 6 Purchased on credit are supplies for $1,800 and office supplies for $800 from Robinson Supply Company January 8 Paid $4,800 for a one-year insurance policy with coverage effective January 1 January 9 Paid Robinson Supply Company $1,000 of the amount owed January 10 Performed a service by placing advertisements for automobile dealer in the newspaper and collected a fee of $1,400 January 12 Paid the secretary two weeks' wages, $600 (Friday) January 15 Accepted $2,600 as an advance fee for art work to be done for another agency January 19 Performed a service by placing several major advertisements for Macy's Department Stores. The fee of $2,800 is billed now but will be collected next month. January 25 Pedro Hernandez withdrew $1,400 from the business for personal use. January 26 Paid the secretary two more weeks' wages, $600 (Friday) January 29 Received and paid the utility bill of $100 January 30 Received (but did not pay) a telephone bill, $70 January 31 One-half of prepaid rent had expired January 31 One-twelfth of prepaid insurance has expired January 31 Art supplies costing $300 is still on hand January 31 Office supplies costing $600 is still on hand January 31 Art equipment has a useful life of 5 years; calculate depreciation (1 month) January 31 Office equipment has a useful life of 10 years; calculate depreciation (1 month) January 31 $400 of the art work was completed and accepted by the other agency January 31 Agreed to place advertisements for Diego Tire Co. on January 31 for $200 January 31 The secretary worked the last 3 days of January; record the accrued wages

***The Instructions are on the next page*** INSTRUCTIONS 1. Record all transactions in the General Journal