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Two employees have been hired, at a monthly salary of $ 2 , 2 0 0 each. The following transactions occurred during January of the

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Two employees have been hired, at a monthly salary of $2,200 each. The following transactions occurred during January of the current year.
January Additional information for adjusting entries:
31a. A $1,200 bill arrives for January utility services. Payment is due February 15.
31b. Supplies on hand on January 31 are counted and determined to have cost $250.
31c. As of January 31, ON had completed 60% of the deliveries for the customer who paid in advance on January 20.
31d. Accrue one month of interest on the bank loan. Yearly interest is determined by multiplying the amount borrowed by the annual
interest rate (expressed as 0.06). For convenience, calculate January interest as one-twelfth of the annual interest.
31e. Assume the van will be used for 4 years, after which it will have no value. Thus, each year, one-fourth of the van's benefits will be
used up, which implies annual depreciation equal to one-fourth of the van's total cost. Record depreciation for the month of January,
equal to one-twelfth of the annual depreciation expense.
31f. Salaries earned by employees for the period from January 16 to 31 are $1,100 per employee and will be paid on February 3.
31g. Adjust the prepaid asset accounts (for rent and insurance) as needed.
REQUIREMENTS
1. Record journal entries for the transactions that occurred from January 1 to 25.(If no entry is required for a transaction/event, select "No
Journal Entry Required" in the first account field.)
2. Prepare an unadjusted trial balance at January 31.
3. Record all adjusting journal entries needed at January 31. Ignore income taxes. (Do not round intermediate calculations. If no entry is
required for a transaction/event, select "No Journal Entry Required" in the first account field.)
4. Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions from January 1-25. Then post the
adjusting journal entries from January 31.(Do not round intermediate calculations.)
5. Prepare an adjusted trial balance. (Do not round intermediate calculations.)
6. Prepare an income statement, the statement of retained earnings, the balance sheet.
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