Question

BUSINESS TRANSACTIONS for the MONTH of January 2020.

Prepare the Trial Balance with month End Balance

1) Jan-1 The JW-Corp Received $120,000 from Investors in Exchange for 6,000 shares of Common Stock.

2) Jan-2 JW-Corp Borrowed $150,000 from SCHWAB BANK and signed a Note Due in 24 months.

3) Jan-3 JW Corp purchased Office Equipment worth $120,000 (5 year life), with a $40,000 Down payment of Cash and the remainder Due on account to Target-Corp within 9 Months.

4) Jan-4 JW Corp purchased an Office Building for $600,000 (25 year life), by making a Down payment of $60,000 and then signed a Note for the remainder Due in 18 Months to CHASE Bank

.5) Jan-5 JW Corp paid $15,000 with a check for Office Rent for the next 3 months

.6) Jan-10 JW Corp paid $4,000 with a check for Business Insurance for this month.

7) Jan-11 JW Corp provided CPA Services to the Gavilan Corp worth $175,000 and Collected $85,000 Cash and Billed them the remainder on Account.

8) Jan-15 JW-Corp received This Month’s Utility Bill from PGE for $3,000 to be paid Later.

9) Jan-16 JW-Corp received This Month’s Telephone Bill from Skype for $200 to be paid Later.

10) Jan-17 JW-Corp received a $10,000 check from Gavilan Corp on Account.

11) Jan-20 JW-Corp received a BILL for $15,000 for Legal Fees used this month to be Paid Later.

12) Jan-23 JW-Corp paid $11,000 with Checks for this Months Salaries expenses.

13) Jan-24 JW-Corp Received a $13,000 check from Gavilan Corp on Account.

14) Jan-25 JW-Corp received a $27,000 check from Garlic-Corp for Services to be Provided Later.

15) Jan-26 JW-Corp Paid Target $33,000 with a Check towards the Equipment from Transaction #3.

16) Jan-27 JW Corp Wrote a Check to Skype for the Full Amount Due on account for the Telephone Bill from #9.

17) Jan-28 JW Corp Paid $4.20 Cents per Share to the Owners of the Business with Checks.

18) Jan-29 JW-Corp paid $9,000 with a Check on the Note Payable from Transaction #2, $2,800 was for Interest Expense, and the remainder reduced the Note Payable

19) Jan-31 JW-Corp recorded one Month of RENT Expense from the Prepaid Account.

20) Jan-31 JW-Corp recorded one Month of Depreciation Expense on The Office Equipment Using the Straight Line Depreciation Method.

21) Jan-31 The JW Corp recorded one Month of Depreciation Expense on the Office Building using the Straight Line Depreciation Method.

22) Jan-31 the JW-Corp Recorded the Income Tax Payable for the Month, which is 34.00% of Net Income.(Ch#4)

Answer 1

Prepare journal entries as follows:

Date	Account Titles	Debit	Credit
Jan. 01	Cash	$120,000
	Common stock		$120,000
Jan. 02	Cash	$150,000
	Notes payable		$150,000
Jan. 03	Office Equipment	$120,000
	Cash		$40,000
	Accounts payable		$80,000
Jan. 04	Office Building	$600,000
	Cash		$60,000
	Notes payable		$540,000
Jan. 05	Prepaid Rent	$15,000
	Cash		$15,000
Jan. 10	Insurance Expense	$4,000
	Cash		$4,000
Jan. 11	Cash	$85,000
	Accounts receivable	$90,000
	Service revenue		$175,000
Jan. 15	Utility Expense	$3,000
	Accounts payable		$3,000
Jan. 16	Telephone Expense	$200
	Accounts payable		$200
Jan. 17	Cash	$10,000
	Accounts receivable		$10,000
Jan. 20	Legal Expense	$15,000
	Accounts payable		$15,000
Jan. 23	Salaries Expense	$11,000
	Cash		$11,000
Jan. 24	Cash	$13,000
	Accounts receivable		$13,000
Jan. 25	Cash	$27,000
	Unearned revenue		$27,000
Jan. 26	Accounts payable	$33,000
	Cash		$33,000
Jan. 27	Accounts payable	$200
	Cash		$200
Jan. 28	Dividends	$25,200
	Cash		$25,200
	[6000 * $4.20]
Jan. 29	Notes payable	$6,200
	Interest expense	$2,800
	Cash		$9,000
Jan. 31	Rent Expense	$5,000
	Prepaid rent		$5,000
	[$15000 / 3]
Jan. 31	Depreciation expense-office building	$2,000
	Accumulated depreciation-office building		$2,000
	[($120000/5 years) * 1/12
Jan. 31	Depreciation expense-office equipment	$2,000
	Accumulated depreciation-office equipment		$2,000
	[($600000/25 years) * 1/12
Jan. 31	Income tax expense	$44,200
	Income tax payable [W.N]		$44,200

_____________________________________________

Income Statement
Revenue:
Service revenue		$175,000
Expense:
Salaries expense	$11,000
Insurance Expense	$4,000
Utility Expense	$3,000
Telephone Expense	$200
Legal Expense	$15,000
Interest expense	$2,800
Rent Expense	$5,000
Depreciation expense-office building	$2,000
Depreciation expense-office equipment	$2,000	$45,000
Income before tax		$130,000
Income tax expense @ 34%		$44,200.00
Income after tax		$85,800.00

_______________________________________________________________

Trial Balance
	Debit	Credit
Cash	$207,600
Accounts receivable	$67,000
Prepaid rent	$10,000
Office equipment	$120,000
Accumulated depreciation-office equipment		$2,000
Office building	$600,000
Accumulated depreciation-office building		$2,000
Accounts payable		$65,000
Unearned revenue		$27,000
Income tax payable		$44,200
Notes payable [$150000 + $540000 -$6200]		$683,800
Common stock		$120,000
Dividends	$25,200
Service revenue		$175,000
Salaries expense	$11,000
Insurance Expense	$4,000
Utility Expense	$3,000
Telephone Expense	$200
Legal Expense	$15,000
Interest expense	$2,800
Rent Expense	$5,000
Depreciation expense-office building	$2,000
Depreciation expense-office equipment	$2,000
Income tax expense	$44,200
	1119000	1119000