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1. CREATE JOURNAL ENTRIES FOR THE JANUARY 2018 TRANSACTIONS BELOW FOR SUNFLOWER DESIGNS:

a. On January 1, $350 of office supplies was purchased on credit; the terms of the invoice were net 30. All of the supplies were used during the month of January. b. On January 1, a 24-month liability insurance policy was purchased to cover Sunflower Designs. The full cost of the policy, $1,800, was paid in cash on the same date. c. On January 1, a desktop computer was purchased on credit totaling $2,100. The estimated useful life of the computer is five (5) years and is expected to have no salvage value. The invoice terms were 2/10, net 30. d. On January 5, Sunflower Designs purchased $1,275 worth of inventory items for resale. These items were purchased on credit and the invoice term is net 30. e. On January 8, a check was issued to pay for the computer purchased on January 1. f. On January 10, Sunflower Designs paid for the office supplies purchased on credit on January 1. g. On January 12, Sunflower Designs completed and delivered an interior design layout to a customer for $5,000. The customer had paid for the services in advance in a previous month, and Sunflower Designs had appropriately recorded the deposit. h. On January 14, Sunflower Designs completed, delivered, and billed an interior design layout for $18,500 to a new customer. The terms of the invoice were 2/10, net 30. i. On January 16, Sunflower Designs paid $4,225 in wages to a temporary employee. The wages had been accrued in a previous period. On the same date, the company remitted payroll taxes of $1,055, previously accrued, to the appropriate government entities. j. On January 18, Sunflower Designs received a refund of $30 from their office supply vendor for items that were returned on the January 1 purchase. k. On January 20, a customer paid the balance due for an interior design layout. The invoice for these services was sent to the customer on December 20, 2017. The contract price was $5,000. Last edit: 8/7/18 Page 2 of 3 l. On January 24, Sunflower Designs sold a side table from inventory for $275. The inventory cost for this item was $125. The customer paid cash for this purchase. m.On January 26, $200 worth of inventory was returned to supplier because of defects. The inventory had been purchased on account in December, and had not yet been paid for. n. On January 30, the customer delivered a check for one-half of the interior design invoice delivered on January 14.

2. CREATE THE JANUARY 31, 2018 UNADJUSTED TRIAL BALANCE

3. CREATE ADJUSTING JOURNAL ENTRIES FOR JANUARY 31, 2018:

o. Record the depreciation for the laptop purchased on January 1. p. Record the January 2018 depreciation for all computers & software owned before the January 1 purchase. These items are being depreciated over 5 years using the straight-line method with no salvage value. q. Record the January 2018 depreciation for the furniture & fixtures. These items are being depreciation over 7 years using the straight-line method with no salvage value. r. Record the adjusting entry for Januarys rent. Sunflower Designs paid $2,100 in advance for 6 months rent on December 1, 2017. All previous months adjusting entries were made as required. s. Record the adjusting entry to record the use of the prepaid insurance coverage in January. The amount of the expired insurance coverage was $200. The previous months adjusting entries were made as required. t. Record the amount due to an employee for time worked during January, but not paid. The amount earned by the employee was $3,170.

4. CREATE THE ADJUSTED TRIAL BALANCE

	january 1, 2018 Beginning Balances
Description	Debit	Credit
Cash	95,349.00
Accounts Receivable	7,250.00
Inventory	4,898.00
Prepaid Insurance	3,250.00
Prepaid Rent	1,750.00
Building
Computers & Software	2,740.00
Accumulated Dep Comp		411.00
Furniture & Fixtures	5,775.00
Accumulated Dep F&F		619.00
Land
Machinery & Equipment
Accumulated Dep M&E
Accounts Payable		1,600.00
Payroll Tax Payable		1,055.00
Sales Tax Payable		250.00
Unearned Revenue		5,000.00
Line of Credit
Notes Payable
Wages Payable		4,225.00
Peters, J., Capital		1,000.00
Peters, M., Capital		1,000.00
Retained Earnings		105,852.00
Designing Revenue
Furnishing Sales
Cost of Goods Sold
Vendor Compensation
Contract Labor Expense
Materials Expense
Supplies Expense
Wages Expense
Depreciation Expense
Insurance Expense
Office Rent Expense
Office Supplies Expense
Payroll Tax Expense
Postage Expense
Small Tools Expense
	121,012.00	121,012.00

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