Instructions

• Journalize the transactions for the month of January 2018,beginning on page GJ1. Be sure and list the Debit Account(s) first;Credit Account(s) next. Write a brief explanation for eachtransaction, and skip a line in-between transactions.
• Post the journal entries to the general ledger accounts. Besure and use the Post Reference #s for each posting. (Hint: thebalance of the cash account after all journal entries have beenposted should be $9,915).
• Prepare the Trial Balance section of the worksheet.
• Prepare the Adjustments section of the worksheet.
  • Compute and record the adjustment for supplies used during themonth. An inventory showed supplies on hand of $250.
  • One month insurance has been used up.
  • Record the adjustment for depreciation of Office Equipment of$85 for the month.
  • Record the adjustment for depreciation of Tools of $125 for themonth.
• Complete the worksheet.
• Prepare an Income Statement, Statement of Owner’s Equity, andBalance Sheet for the month. Be sure to add the date to eachfinancial statement.
• Journalize and post the Adjusting entries.
• Journalize and post the Closing entries.
• Prepare a Post-closing Trial Balance.

CHART OF ACCOUNTS

Assets                                                                    Revenue

111     Cash                                                          411     Income from Services

112     AccountsReceivable                               

114    Supplies                                                      Expenses

116     PrepaidInsurance                                    511     Advertising Expense

121     OfficeEquipment                                      512     Supplies Expense

122     Accum. Depr., OfficeEquipment          513     Insurance Expense

123    Tools                                                           514     Utilities Expense

124     Accum. Depr.,Tools                               515     Salaries Expense

125     Truck                                                           516     Truck Expense

521     Depreciation Expense - OfficeEquipment

Liabilities                                                                 522     Depreciation Expense - Tools

211     Accounts Payable   

Owner’sEquity                                                                 

311     Mike Hammer,Capital                             

312     Mike Hammer, Drawing

330     Income Summary

Transactions for the month:

You made the following transactions for Mike’s Quality RepairServices during the month of January:

Jan.    1         Invested $15,000cash, and a truck with a fair market value of $8,500 into thebusiness.      

3          Paid$1800 to Liberty Mutual for a 1-year insurance policy. The policyis effective immediately. Ck# 1001

4          Boughttools from Sears on account, $7500, Inv. #X-1357

5          Boughtcomputer system from Ben’s Computer Center, $5000, putting $2500down and putting the balance on account, Ck. #1002, Inv.#Y-4152.

6          Boughtsupplies-Office Mart, $850, Ck. #1003.

7         Performed services for cash, $1,650.

10        Performed serviceson account, $1275.

12        Received and paidtelephone bill, $420, ck#1004.

13        Bought supplies onaccount from Office Mart, $900, Inv. AB1477.

15        Received and paidthe utility bill, $600, Ck. #1005.

15        Paid salary foroffice clerk, 1/1-1/15-$1000, Ck# 1006.

20        Received The TimesReview bill for advertising for the month, $410, Inv. #TR198.

           (Note that you did not PAY the bill – you only received it).

21        Performed services$7,250, received $2,250 cash, with the balance due in 30 days.

27        Received fromclients $1,275, for work completed on January 10.

28        Paid for oil changeon truck, $90, ck#1007.

29        Withdrew cash forpersonal use, $1500, Ck. #1008.

30        Paid salary foroffice clerk, 1/16-1/30, $1000, ck#1009.

30        Made partialpayment of $500 to Office Mart for supplies purchased on January13th, Ck#1010.