Assume that you are the chief accountant for Eli’s Consulting Services. During January, the business will use the same types of records and procedures that you learned about in Chapters 1 through 6. The chart of accounts for Eli’s Consulting Services has been expanded to include a few new accounts. Follow the instructions on the Requirements tab to complete the accounting records for the month of January.
DATE TRANSACTIONS
January 2 Purchased supplies for $14,000; issued Check 1015.
January 2 Purchased a one-year insurance policy for $16,800.
January 7 Sold services for $30,000 in cash and $20,000 on credit during the first week of January.
January 12 Collected a total of $8,000 on account from credit customers during the first week of January.
January 12 Issued Check 1017 for $7,200 to pay for special promotional advertising to new businesses on the local radio station during the month.
January 13 Collected a total of $9,000 on account from credit customers during the second week of January.
January 14 Returned supplies that were damaged for a cash refund of $1,500.
January 15 Sold services for $41,400 in cash and $4,600 on credit during the second week of January.
January 20 Purchased supplies for $10,000 from White’s, Incorporated; received Invoice 2384 payable in 30 days.
January 20 Sold services for $25,000 in cash and $7,000 on credit during the third week of January.
January 20 Collected a total of $11,200 on account from credit customers during the third week of January.
January 21 Issued Check 1018 for $14,130 to pay for maintenance work on the office equipment.
January 22 Issued Check 1019 for $7,200 to pay for special promotional advertising to new businesses in the local newspaper.
January 23 Received the monthly telephone bill for $2,050 and paid it with Check 1020.
January 26 Collected a total of $3,200 on account from credit customers during the fourth week of January.
January 27 Issued Check 1021 for $6,000 to Office Plus as payment on account for Invoice 2223.
January 28 Sent Check 1022 for $5,350 in payment of the monthly bill for utilities.
January 29 Sold services for $38,000 in cash and $5,500 on credit during the fourth week of January.
January 31 Issued Checks 1023–1027 for $65,600 to pay the monthly salaries of the regular employees and three part-time workers.
January 31 Issued Check 1028 for $24,000 for personal use.
January 31 Issued Check 1029 for $8,300 to pay for maintenance services for the month.
January 31 Purchased additional equipment for $30,000 from Contemporary Equipment Company; issued Check 1030 for $20,000 and bought the rest on credit. The equipment has a five-year life and no salvage value.
January 31 Sold services for $15,200 in cash and $3,240 on credit on January 31.
ADJUSTMENTS
January 31 Compute and record the adjustment for supplies used during the month. An inventory taken on January 31 showed supplies of $9,400 on hand.
January 31 Compute and record the adjustment for expired insurance for the month.
January 31 Record the adjustment for one month of expired rent of $4,000.
January 31 Record the adjustment for depreciation of $183 on the old equipment for the month. The first adjustment for depreciation for the new equipment will be recorded in February.
Required:
General Ledger tab: Enter the account balances for January 1, 20X2 from the postclosing trial balance prepared on December 31, 20X1, which appears in Figure 6.3.
General Journal tab: Analyze each of the transactions listed for January and record it in the general journal.
General Ledger tab: Post the transactions to the general ledger accounts.
Worksheet tab: Prepare the Trial Balance section of the worksheet.
Worksheet tab: Prepare the Adjustments section of the worksheet using the adjusting transactions.
Worksheet tab: Complete the worksheet.
Income Statement tab: Prepare an income statement for the month.
Statement of Owner’s Equity tab: Prepare a statement of owner’s equity.
Balance Sheet tab: Prepare a balance sheet.
Adjusting and Closing tab: Record the adjusting entries and the closing entries in the general journal.
General Ledger tab: Post the adjusting entries and the closing entries to the general ledger accounts.
Post Closing tab: Prepare a postclosing trial balance.
