Using the information for the new company of Faulkner and Montgomery CPAs for January 2020, completing the company's first accounting cycle for January 2020, the traditional accounting worksheet and prepare the January 31, 2020 financial Statements in proper form. What needs to be completed is; Adjusting Entries, Balance Sheet, Closing Entries, General Journal Entries, General Ledger, Income Statement, Statement of Retain Earnings, and Work sheet.

Date Transactions for January 2020 1 M&H CPA's collected $5,250 in Accounts receivable. On the first business day of the month, a $10,000 Accounts Receivable is converted into 6.00% 90 day Note Receivable to give the client more time to pay. 3 M&H CPAs complete a $4,600 Audit and charge the clients, on account. A M&H CPA's pays the $500 salaries payable. 5 $1000.00 of office supplies are purchased on account by the company. 6 Early in the month, the company is put on retainer to complete tax and audit work for a client over the next three months and is paid $2,400 up front. 7 M&H pays $4,500 of its outstanding Accounts Payables. The company pays its employees every two weeks a total of $3,500 with $2,800 paid in cash and the remainder in federal and state tax deductions that are paid quarterly. Received $4,200 payment for an outstanding receivable from the beginning of the month. 10 The company completed an audit and recognized $400 as eamed from the uneamed service revenue account. 11 M&H received its electric and water bill for $900 and its natural gas bill for $550. both due in 30 days. 12 The company completed staff training for $750 and paid the presenter at the end of the day. 13 M&H purchased its up-dated on-line tax service for a one-time $1250 fee paid on-line. 14 The staff completed eighteen tax returns and collected $2,100. 15 The completed a $5,600 audit and collected $1,600 with the remainder due in 30 days. 16 The company eams $800 on the transaction #6. 17 The Company wrote off an Accounts Receivable value at $1,950 18 The company pays its employees every two weeks a total of $3,500 with $2,800 paid in cash and the remainder in federal and state tax deductions that are paid quarterly. 19 The company pays 950 a month for its monthly copy machine rental. 20 M&H collected $2,500 from transaction #2 above on the last day of the month and paid one month interest on the full amount before the payment 21 On the last day of the month, the partners of the firm declared a $3,000 dividend for the month, payable in 30 days. 22 Completed an Audit and charged $3,800 on account.Adjusted Trial Balance Worksheet Trial Balance M&H CPAs Adjustments Adjusted Trial Balance Income Statement Balance Sheet Income Summary Closing Trial Balance Account Title Dr Cr DR CR DR CR OR CR DR CR Cash Accounts Receivable Allowance for Doubtful Accounts Note receivable Prepaid Rent Supplies Land Equipment Accumulated Depreciation Accounts Payable Salary payable Payroll Taxes Payable Dividends Payable Unearned Service Revenue Common stock Retained earnings Service Revenue Interest Revenue Payroll Expense Electric and Water Expense Natural Gas Expense Training Expense Software Expenses Copy Expense Bad Debts Expense Depreciation Expense Supplies Expense Rent Expense Accrued Payroll IncomeAdjustments January 31, 2020 Depreciation is recognized at $500 per month There was $550 of Supplies left at the end of the month Estimated Allowance for Doubtful accounts should be $2,200 (Must into account Ending Allowance balance) D There was two days of salaries (10 day pay period - $350/Day) that had to be accrued that will be paid in the next month Of the expense, 20% goes to Payroll Taxes Payable and 80% goes to Cash paid E Rent in the amount of $600 is recognized in JanuaryFaulkner & Montgomery CPAs Balance Sheet 31-Doo-19 ASSETS Current assets: Cash $0,500 Accounts receivable 21,800 Allowance for Doublul Accounts 2,800 19,300 Prepaid Rent 2.100 Supplies 100 Total Current Assets 30,000 Longterm Assets Land Equipment $25,100 Accumulated Depreciation 4.000 20 100 25,100 Total moots 455 100 LIABILITIES Current Habilitlest Accounts payable $7.000 Salary Payable 500 Unearned Service Revenue 400 Total Current Liabilities 7,900 STOCKHOLDERS EQUITY Common stock 7,500 Retained earnings 38 700 Total Stockholders Equity 47, 200 Total Liabilities and Stockholders' Equity $55.100Cash Accounts Receivable Accounts Payable 8,500 21,800 7.000 8,500 Prepaid rent 2,10D TTTTTT Payroll Taxes FFFFFFT Common stock Retained Earnings Service Revenue Interest Revenue Gas Expense Electric/Water Expense ETTTITI Rent Expense Training Expense Payroll Expense Software Expense Copy Expense Supplies Expense Bad Debts Expense