You are presented with an opportunity to expand your business. . The owner of Esquiver Supply Co. has approached you to become the exclusive distributor of these fine mixers in your state. The current cost of a mixer is approximately $420, and you would sell each one for $985. You decide to use the perpetual inventory system. The following transactions happen during the month of January. Jan.4 Bought six deluxe mixers on account from Esquiver Supply Co. for $2,520, FOB shipping point, terms n/30. 5 Paid $120 for freight on the January 4 purchase. 7 Returned one of the mixers to Esquiver because it was damaged during shipping. Esquiver issues you credit for the cost of the mixer plus $20 for the cost of freight that was paid on January 5 for one mixer. 8 Collected $425 of the accounts receivable from December 2020. 12 Three deluxe mixers are sold on account for $2,955, FOB destination, terms n/30. (Cost of goods sold is $440 per mixer.) 14 Paid the $75 of delivery charges for the three mixers that were sold on January 12. 14 Bought four deluxe mixers on account from Esquiver Supply Co. for $1,680, FOB shipping point, terms n/30. 17 You are concerned that there is not enough cash available to pay for all of the mixers purchased. You invest an additional $1,200 cash in your business. 18 Paid $80 for freight on the January 14 purchase. 20 Sold two deluxe mixers for $1,970 cash. (Cost of goods sold is $440 per mixer.) 28 You issued a check to your assistant for all the help the assistant has given you during the month. Your assistant worked 25 hours in January and is also paid the $91 owed on December 31, 2020. (Your assistant new rate as of January 1st is $14 an hour.) 28 Collected the amounts due from customers for the January 12 transaction. 30 Paid $145 in communications ($75 for the December 2020 accounts payable and $70 for the month of January). 31 Paid Esquiver all amounts due. 31 You withdraw $750 in cash. As of January 31, the following adjusting entry data is available. A count of baking supplies reveals that none were used in January. Another months worth of depreciation needs to be recorded on the $1,500 of baking equipment obtained in November. (Recall that the baking equipment has a useful life of 5 years or 60 months and no salvage value.) An additional months worth of interest on your parents $3,400 loan needs to be accrued. (The interest rate is 6%.) During the month, $115 of insurance has expired. An analysis of the unearned service revenue account reveals that the parties were not scheduled this month. As a result, there is no change to the unearned service revenue account. You hope to complete the remaining parties in February. An inventory count of mixers at the end of January reveals that you have four mixers remaining. An additional month of amortization of the website needs to be applied ($36). Required Using the information from previous exercises and the new information above, do the following. Prepare and post the January 2021 transactions. Prepare a trial balance. Prepare and post the adjusting journal entries required. Prepare an adjusted trial balance. Prepare a multiple-step income statement for the month ending January 31, 2021. You will need the post-closing trial balance from December 31, 2020 Post-Closing Trial Balance December 31, 2020 cash 610 Supplies 390 prepaid insurance 1265 accounts receivable 2150 Website 920 Equipment 1850 Accumulated depreciation equipment 50 accrued interest payable 24 notes payable 3200 accounts payable 75 Wages payable 91 unearned revenue 370 Owners Capital 3375 Total 7185 7185