The following information applies to the questions displayed below. VOITOULOSTVI TOSA 8,000 Two classmates Jane and Aaliyah began operations of their t-shirt printing shop (J & A Cloth Printers, Inc.) on January 1, 2019. The annual reporting period ends December 31. The trial balance on January 1, 2020, follows: Account # Account Titles Debit Credit 100 Cash 5,000 GO TOLO 110 Accounts receivable $6,000 120 Supplies 12,000 130 Land 140 Equipment 79,000 141 Accumulated depreciation - Equipment 150 Other assets (not detailed to simplify) 7,000 210 Accounts payable 220 Wages payable sen 230 Interest payable 240 Income taxes payable 250 Long-term notes payable 300 Common stock (8,000 shares, $0.50 par value) 4,000 ERODUIT 79,000 310 Additional paid-in capital 320 Retained earnings 18,000 400 Service revenue 540 Depreciation expense 520 Supplies expense 530 Wages expense 550 Interest expense svob 560 Income tax expense 570 Remaining expenses (not detailed to simplify) Totals 109,000 109,000 J & A Cloth Printers, Inc. Balance Sheet At January 31, 2020 Liabilities Assets Current liabilities: Current assets: s S Total current assets Total current liabilities Stockholders' equity $ Net book value Other assets Total stockholders equity Total liabilities and stockholders' equity Total assets 15 5. Prepare an income statement (including earnings per share), statement of stockholders equity, and balance sheet. (For the Statement of Stockholders' Equity and Balance Sheet only, items to be deducted must be indicated with a minus sign. Round "Earnings per share" to 2 decimal places.) J&A Cloth Printers, Inc. Income Statement For the Month Ended January 31, 2020 Operating revenues: | be Operating expenses: Total operating expenses Operating income Other item: Pretax income Net income Earnings per share 13 4. Prepare an Unadjusted Trial Balance as well as the Adjusted Trial Balance below. Trial Balance Worksheet January 2017 Account Name Unadjusted Trial Balance Debit Credit Adjusting Entries Debit Credit Adjusted Trial Balance Debit Credit Cash Totals 12 25 w 3. Post the journal entries for the January transactions from GJ1 and the January 31 adjusting entries from GJ2 to the respective General Ledger Accounts (T-Accounts) Account #100 - Cash Credit Balance Ref. Debit 1 GJI Date Description or Explanation Jan Beginning Balance 5.000 1 Borrowed cash and issued a note payable 15,000 purchased land for cash $ revenues earned IGST b1000 10 sold shares of capital thick fix cock 6) 1 4500 12 remaining expenses incorred G01 13 collected accounts recicable GSL 33000 14 Purchased other ossets for cash G. 1 Ub paid accounts powable IGJ 1 30 Dedored and paid coch dividad GJ 1 5.000 20,000 12000 12000 1169 000 173500 190000 83500 116500 14500 102000 Quoo 78000 25 000 53000 200 Account 110 - Accounts Receivable Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance 6000 8 revenues earned GJ1 53000 13 collected accounts recenbe GS 1 59000 33000 26000 Account #120 - Supplies Ref. Debit Credit Date Description or Explanation Jan Beginning Balance 1 Balance 12000 20 000 15 purchased supplies on account ) 1 31 (adjusting onning for Supplies GJ2 used) 32000 122000 10 000 Account #130 - Land Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance 4 purchased land for cash 12000 12000 12000 of Account W140 - Equipment Ref. Debit Credit Date Description or Explanation Jan Beginning Balance Balance 79000 99000 Account #141 - Accumulated depreciation - Equipment Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance 8000 9000 17000 31 adjusted entry for depreuation on equipment) 2 Account #150 - Other assets Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance 7000 21500 14500 14 purchased other ossets for cash 6)1 A Account #210 - Accounts Payable Date Description or Explanation Jan Beginning Balance Ref. Debit Credit Balance 12 remaining expenses incuned w 15 purchased supplies on alloa 631 Il paid accounts payable 122000 22000 20000 42000 la4000 18 000 Account #220 - Wages Payable Date Description or Explanation Jan Beginning Balance Ref. Debit Credit Balance 31 (adjusting entry for wages camed 632 but not yet paid) IS000 15000 Account #230 - Interest Payable Date Description or Explanation Jan Beginning Balance Rer Debit Credit Balance 31 (adjusting entry for interest 612 100 100 Account #240 - Income Taxes Payable Ref. Date Description or Explanation Jan Beginning Balance Debit Credit Balance 31 adjusted entry for income 16J2 tax payable) 12000 12000 Account 250 - Long-Term Notes Payable Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance ISOOO IS OO Borrowed cash and issued 61 note payable Account W300 - Common Stock Ref Debit Credit Balance Date Description or Explanation Jan Beginning Balance 4000 62.50 GJ 1 2250 10 sold shares of capital stock for cash Account 310 - Additional Paid In Capital Ref Debit Credit Balance Date Description or Explanation Jan Beginning Balance 79000 81 250 2250 10 sold shares of capital pour CJ 1 for cash Account W320 - Retained Earnings Credit Balance Date Description or Explanation Ref. Debit Jan Beginning Balance 1 30 Declared and paid cash dividend G1 25000 31 closing entry 18000 C7 DOO ) 43900 36900 2000 2006 Ref Debit Credit Balance Account #400-Service Revenue Date Description or Explanation Jan Beginning Balance 8 recues carned 31 Closing only GJ1 214000 24 OGO 24000 Credit Balance Account 540 - Depreciation Expense Date Description or Explanation Ref Debit Jan Beginning Balance 31 (adjusting SS GS 29000 3. Clone ents 9000 9000 Date Debit Credit Balance Account #520 - Supplies Expense Description or Explanation Ref. Jan Beginning Balance 131 Cadsusting en hou supplies used 612 31 closing entry 22.000 28cco 22 DOO Account #530 - Wages Expense Date Debit Credit Balance Description or Explanation Ref. Jan Beginning Balance 31 (adjusted enting for some dove pesakies GJ 2 31 closing entry. IS 600 SOOO ISDOO 10 bane Account #550 - Interest Expense Rel Debit Credit Balance Date Description or Explanation Jan Beginning Balance 3 adjusting entry for 31 Closingeomy 100 100 100 Account #560 - Income Tax Expense Debit Credit Balance Date Description or Explanation Ref. Jan Beginning Balance 3 (adjusting entry for incons taxes GJ 2 3 closing entry 12000 12000 12000 Account #570 - Remaining Expense Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance 12 remaining expense incurred 31 Closing entry 112000 12000 12000 Transactions during January 2020 follow: Jan 1: Borrowed $15,000 cash on a five-year, 8 percent note payable, dated January 1, 2020. Jan 4: Purchased land for a future building site: paid cash, $12,000. Jan 8: Eamed $214,000 in revenues, including $53,000 on credit and the rest in cash. Jan 10: Sold 4,500 additional shares of capital stock for cash at Si market value per share on January 10 . 2020 Jan 12: Incurred $112,000 in Remaining Expenses, including $22,000 on credit and the rest paid in cash. Jan 13: Collected accounts receivable, $33,000. Jan 14: Purchased other assets, $14,500 cash. Jan 15: Purchased supplies on account for future use, $20,000. Jan 16: Paid accounts payable, $24,000. Jan 18: Signed a three-year $33,000 service contract to start January 12, 2021. Jan 30: Declared and paid cash dividends, $25,000. 1. Prepare and record journal entries for the above transactions in the General Journal (GJI) below. All journal entries must have an explanation. Account and Explanation Pest Rer. Credit Debit Date Jan 1 Cash 100 250 15,000 Long-Term Notes Payable 15,000 (Borrowed cash and issued a note payable) Jan Land 136 12 000 4 cash 100 12000 (purchased land for cash san accounts recevable 53000 8 Cash 100 161.00 Service revenue 400 214000 rencnues corned Jan cash 100 4500 10 Common STOCK 300 laa 50 additional paid in capital 1310 2250 (sold shores of copikal syok for cash) San remaining expenses 1510 112000 (12 accounts payable 210 Jaa 000 cash 90000 Cremaining expenses incurred) 3 Debit Credit 33000 33000 14500 14 Soo GJ2 Credit 20000 120.000 Date Account and Explanation Post Re san cash 100 13 accounts recievable 110 Colccted accounts relievable) Jan other assets 150 14 cash 100 Couronased other osseks for sh Jan Supplies 120 15 accounts payable a 10 Durchased Soo on occount Jon accounts payable 210 cash DO (paid accounts payable san No entry Jon retained earnings 326 30 cash 100 Caeclared and paid cash dividends) 200 24.000 24000 00 10C 25000 25000 ISO 12 Data for adjusting entries Jan 31: Supplies counted on January 31, 2020, 510,000 Jan 31: Depreciation for January 2020 on the equipment, 59,000 Jan 31: Interest accrued on notes payable for January 2020 (to be computed by student) Jan 31: Wages cured by employees since the December 24 payroll but not yet paid. $15,000 Jan 31: Income tax expense, $12,000, payable in March 2020. 2. Prepare and record journal entries for the above transactions in the General Journal (GJ2) below. GJ2 Date Account and Explanation Post Ref. Debit Credit Jan 31 Supplies Expense 520 22000 Supplies 120 Ja2000 (Adjusting entry for supplies wed) son de preciation expense 540 A DOO 31. accumulated deprecianon equipment 19000 S50 100 Jan mterest expense 31 interest payane 100 530 aao 15000 19ooo dan wages expense 31. WooC_poyable Jan income tax expense 31 income taxes payable 12000 560 240 12 000 5 Post Ref. TOO Debit Credit 33000 133000 14500 14 500 Date Account and Explanation Jan cash. 13 accounts recievable (collected accounts recievable) Jan other assets 150 14 cash 100 Carchased other assets for cash) Jan supplies 126 115 accounts payable a 10 (purchased supplies on accounts. Jan accounts payable 210 cash noi mo 100 (paid accounts payables sur toi san 20000 GO 620000 124000 24000 No entry 25000 000 Jan retained earnings 326 25000 30 cash 110o Cdeclared and paid cash dividends) Transactions during January 2020 follow: Jan 1: Borrowed $15,000 cash on a five-year, 8 percent note payable, dated January 1, 2020. Jan 4: Purchased land for a future building site; paid cash, $12,000. Jan 8: Earned $214,000 in revenues, including $53,000 on credit and the rest in cash. Jan 10: Sold 4,500 additional shares of capital stock for cash at $1 market value per share on January 10 2020. Jan 12: Incurred $112.000 in Remaining Expenses, including $22,000 on credit and the rest paid in cash. Jan 13: Collected accounts receivable, $33,000. Jan 14: Purchased other assets, $14,500 cash. Jan 15: Purchased supplies on account for future use, $20,000. Jan 16: Paid accounts payable, $24,000. Jan 18: Signed a three-year $33,000 service contract to start January 12, 2021. Jan 30: Declared and paid cash dividends, $25,000. 1. Prepare and record journal entries for the above transactions in the General Journal (GJI) below. All journal entries must have an explanation. Account and Explanation Post Ref. Debit Credit Date Jan 1 Cash 100 250 15,000 Long-Term Notes Payable 15,000 (Borrowed cash and issued a note payable) Jan Land 130 12000 cash 100 12000 (purchased land for cash) Jan accounts recievable 116 53000 cash 16100 service revenue 400 1214000 Trevenues earned) Jan cash 100 4500 10 common STOCK 300 aa 50 additional paid in capital 310 aa50 (sold shares of capital stock forcosh) dan remaining expenses 670 11 2000 112 accounts payable alo laa ooo cash 190000 Cremaining expenses incurred) 3