Question: You decide to start aservice business for attorneys. You will do process serving,investigations and other tasks for attorneys. You will charge $40per hour for your service.
On Jan 1, 2019 you start yourbusiness with $50,000 in Cash and the company issues you 10,000shares of stock in exchange.
The following transactions tookplace in January.
1/1/19 - You purchased aservice vehicle for $18,000
1/1/19 - You purchasedinsurance for the vehicle for $1200 the policy expiresdec31,2019.
1/1/19 - You prepaid rentfor an office spaceuntil June 30, 2019 in the amount of$1800.
1/1/19 - You purchased aSurface Pro Tablet for $900. Microsoft sentyou an invoice forthe entire amount due 2/15.
1/5/19 - You signed a contractwith Smith & Smith Law firm for 100 hours of service and thefirm paid you upfront $4000.
1/6/19 - You purchased $1000 of officesupplies on account from office depot. The entire bill is due Feb15th.
The depreciation on the vehicleis $3600 per year and the depreciation on the surface pro is $180per year.
You performed the followinghours of service.
Jan - 20 hours
Feb - 15 hours
March - 35 hours
You paid all your bills ontime.
INSTRUCTIONS: Record thejournal entries and adjusting entries for Jan, Feb and March2019.
Prepare the unadjusted trialbalance as of March 31. Show the March adjusting entries and prepare theadjusted trial balance as of March 31.
