Question

1. Record January transactions in the General Journal and post to the General Ledger.

2. Record adjusting entries for January in the General Journal and post to the General Ledger.

3. Prepare the adjusted trial balance as of January 31.

January Transactions
1-Jan	Performed car repair services and received cash at the time of sale, $4,990.
2-Jan	Paid for the car parts purchased on account last year, $1,170.
4-Jan	Paid wages and salaries for $3,190, part of which was accrued in December.
10-Jan	Paid the utility bill that was already accrued in December in utilities payable.
16-Jan	Collected cash from credit sales made last year, $3,050.
20-Jan	Purchased $4,000 of equipment, paid $2,000 cash and issued a note for $2,000.
22-Jan	Performed car repair services on account, $4,860.
27-Jan	Paid dividends to the company's owners, $400.
January Adjusting Entries
31-Jan	The estimated depreciation on building and equipment is $700.
31-Jan	One month of rent has expired, $1,000.
31-Jan	The annual interest rate is 4% on all notes and paid quarterly. It was last paid on Dec 31 of the prior year. Round to the nearest dollar.
31-Jan	The supplies remaining at the end of the month was $675.
31-Jan	Accrued wages and salaries worked in January that will be paid 2-4, $1,940.
31-Jan	The estimated income taxes for the month is $1,100.

	Thunderduck Car Repair
	Post-Closing Trial Balance
	December 31, 2XX1
	Debit	Credit
Cash	6,800
Accounts receivable	3,150
Supplies	990
Prepaid rent	1,000
Building	87,000
Equipment	105,000
Accumlated depreciation		41,200
Accounts payable		6,460
Utilities payable		750
Salaries and wages payable		2,820
income tax payable		8,240
Notes payable		28,500
Common stock		88,200
Retained Earnings		27,770
Total	203,940	203,940

Answer 1

Date	Particulars	Debit	Credit		Posting of entries to ledgers
01-Jan	Cash	4990				Cash
	Service Revenue		4990			Debit	Credit
					1st Jan Balance	6800
					1st Jan	4990
2nd Jan	Accounts Payable	1170			2nd Jan		1170
	Cash		1170		4th Jan salaries		3190
					10th jan		750
					16th jan	3050
4th Jan	Wages and Salaries payable	2820			20th jan		2000
	Wages and salaries	370			27th jan		400
	cash		3190		total	14840	7510
					31st balance	7330
10th jan	Utilities payable	750
	cash		750
16th Jan	Cash	3050				Service Revenue
	Accounts Receivables		3050			Debit	Credit
					1st jan		4990
					22th jan		4860
20th jan	Equipment	4000			31st bal		9850
	cash		2000
	Notes Payable		2000
22th Jan	Accounts Receivable	4860
	Service Revenue		4860
						Accounts Payables
27th	Dividends expense	400				Debit	Credit
	Cash		400		1st Jan Balance		6460
					2nd Jan	1170
					31st balance		5290
	Journal Entries After Adjustment
31st	Depreciation Expenses					Wages and Salaries Payables
	To accumulated Depreciation	700				Debit	Credit
			700		1st Jan Balance		2820
					4TH jan	2820
31st jan	Rent Expenses	1000			31 st bal		1940
	Prepaid Rent		1000
31st	Interest expense	338
	Interest Payables		338
						Wages and Salaries
						Debit	Credit
31st	Cost of goods sold	315			4th jan	370
	Supplies		315		31st	1940
					31st balance	2310
31st	Income tax expense	1100
	Income tax payables		1100			Utilities Payables
						Debit	Credit
					1st jan balances		750
31st	wages and salaries expenses	1940			10th jan	750
	Wages and Salaries payable		1940
						Accounts Receivables
						Debit	Credit
					1st jan balances	3150
					16th		3050
					22th jan	4860
					31st balance	4960
	Adjusted Trail Balance of jan-31	Debit	Credit
	Cash	7330				Notes Payables
	Accounts Receivable	4960				Debit	Credit
	Service Revenue		9850		1st jan balances		28500
	Supplies	675			20th jan		2000
	Cost of Goods sold	315			bal 31st jan
	Rent Expenses	1000			31st balance		30500
	Building	87000
	Euipment	109000
	Depreciation Expense	700
	Accumulated Depreciation		41900			Equipment
						Debit	Credit
	Salaries and Wages Expenses	2310			1st jan balances	105000
	Salaries and Wages Payables		1940		20th jan	4000
	Incometax expense	1100			31st balance	109000
	Income tax Payables		9340
	Notes payables		30500
	Interest Expenses	338
	Interest Payables		338
	Accounts Payables		5290			Retained Earnings
	Dividends expense	400				Debit	Credit
	Retained earnings		27770		1ST BALAN		27770
	Common Stock		88200		31st bal		27770
		215128	215128
						Depreciation Expenses
						Debit	Credit
					31th	700
						Accumulated Depreciation
						Debit	Credit
					1st balance		41200
					31th		700
					31st bal		41900
						Rent Expenses
						Debit	Credit
					31st	1000
					31st bal	1000
						Prepaid Rent
						Debit	Credit
					1st jan	1000
					31st		1000
						Interest Expense
						Debit	Credit
					31st Interest expense	338
					31st bal	338
						Interest Payable
						Debit	Credit
					Interest expenses		338
					8460*4%=338
					31st bal		338
						Cost of goods sold
						Debit	Credit
					31st	315
					31st bal	315
						Supplies
						Debit	Credit
					1st bala	990
					31st		315
					31st balance	675
						Income tax Expense
						Debit	Credit
					31st	1100
					31st bal	1100
						Income tax payable
						Debit	Credit
					1st		8240
					31st		1100
					31st bal		9340