Use the following transactions to create transactions for a service business of your choice:

1. Al Ain Services Company has taken the following actions for January 2020.
2. January 1 The owner invested $70,000 in cash and $25,000 in Equipment in the company.
3. 
   
4. January 2 The company purchased office supplies for $4,200 from his account.
5. 
   
6. January 5 Paid $600 for a full year insurance
7. 
   
8. January 7 Serviced a customer and received $27,500 in cash.
9. 
   
10. January 9 The company borrowed $20,000 in cash from the bank. Annual interest is 12%.
11. 
    
12. 12 January $15,000 was received in advance from the Benefit company for a service to be completed within 3 months.
13. 
    
14. January 15 The company purchased equipment for $60,000 and paid $12,000 in cash. The remaining amount was in the account.
15. 
    
16. January 20 Owner withdrew $5,500 in cash from the company for personal use.
17. January 31 The company paid $2,800 in cash for an advertisement in a local newspaper.
18. 
    

I. Necessary

A. Prepare general journal entries for the month.

B. Post entries in Notebook 

C. Prepare trial balance

The following additional information was provided at the end of January 2019.

1. January insurance expense has not been recorded.

2. The useful life of the equipment is 10 years. Record depreciation expense for January.

3. Physical count on Jan. 31 revealed that $1,300 was in supply.

4. In January, a service worth $5,000 was provided to Benefit.

5 The interest on the note payable for $150 has not yet been paid.

6. Salaries not paid in the last 2 days of January, 5 days a week weekly salary of $15,000

II. Necessary

Prepare adjustment entries for the above information and prepare a corrected Trial Balance.

III. Necessary

Prepare the following financial statements based on the above adjusted trial balance:

1. Income statemen
2. Equity Statement
3. Classified Balance Sheet