1 Record January transactions in the General Journal and pos

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.

The estimated income taxes for the month is $1,100.

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.

Solution

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