Cindi Lewis decided to expand her business and began selling accounting software, as well as providing accounting services. During January, 2015, Lewis Accounting Services completed these transactions:

 

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Jan      2  Completed a consulting engagement and received cash of $10,000

 

             2  prepaid three months office rent

 

             7 purchased software inventory on account, $4,400, plus freight in, $100

 

             15 withdrew $800 for personal use.

 

             18 sold software on account, $1,100

 

             19 Consulted with a client for a fee of $900

 

             20. Paid $1200 cash in salaries for the month

 

             21.  Paid 1500 for the office furniture bill incurred in December

 

           24.  Paid utilities, $400

 

             28   Sold software for cash, $700 (cost $400)

 

             31. Recorded these adjusting entries:

 

             a. Depreciation of computer equipment and office furniture

 

             b. Expiration of prepaid rent

 

             c. Expiration of prepaid insurance ( in Dec 2 of 2014 Lewis paid $8,500 cash for a 2 years renters insurance)

 

             d. Physical count of inventory, $2800

 

             e. Earned remaining revenue from December 22, 2014

 

 

Required:

Prepare journal entries for the above transactions and post these entries to the ledger.

Prepare adjusting entries on January 31, 2015 and post to the ledger

Prepare an adjusted trial balance, an income statement, a statement of owners equity, and a balance sheet as of January 31, 2015   

Prepare closing entries at January 31, 2015 and post to the ledger   

 

Prepare a post-closing trial balance on January 31, 2015

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