Two friend Jack and Jose began operations of their tool and die shop (J & J Shop, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2017, follows:

Account #

Account Titles

Debit

Credit

100

Cash

6,000

110

Accounts receivable

5,000

120

Supplies

13,000

130

Land

140

Equipment

78,000

141

Accumulated depreciation - Equipment

8,000

150

Other assets (not detailed to simplify)

7,000

210

Accounts payable

220

Wages payable

230

Interest payable

240

Income taxes payable

250

Long-term notes payable

300

Common stock (8,000 shares, $0.50 par value)

4,000

310

Additional paid-in capital

80,000

320

Retained earnings

17,000

400

Service revenue

540

Depreciation expense

520

Supplies expense

530

Wages expense

550

Interest expense

560

Income tax expense

570

Remaining expenses (not detailed to simplify)

Totals

109,000

109,000

Transactions during January 2017 follow:

Jan 1: Borrowed $15,000 cash on a five-year, 8 percent note payable, dated January 1, 2017.

Jan 4: Purchased land for a future building site; paid cash, $13,000.

Jan 8: Earned $215,000 in revenues, including $52,000 on credit and the rest in cash.

Jan 10: Sold 4,000 additional shares of capital stock for cash at $1 market value per share on January 1, 2017.

Jan 12: Incurred $114,000 in Remaining Expenses, including $20,000 on credit and the rest paid in cash.

Jan 13: Collected accounts receivable, $34,000.

Jan 14: Purchased other assets, $15,000 cash.

Jan 15: Purchased supplies on account for future use, $27,000.

Jan 16: Paid accounts payable, $26,000.

Jan 18: Signed a three-year $33,000 service contract to start January 18, 2018.

Jan 30: Declared and paid cash dividends, $25,000.