Answer:
January 2 Purchase rental space for one year in advance, $6,300 ($525/month).
Dr Prepaid expense 6,300
Cr Cash 6,300
January 9 Purchase additional supplies on account, $3,600.
Dr Supplies 3,600
Cr Accounts payable 3,600
January 13 Provide services to customers on account, $25,600.
Dr Accounts receivable 25,600
Cr Service revenue 25,600
January 17 Receive cash in advance from customers for services to be provided in the future, $3,800.
Dr Cash 3,800
Cr Unearned revenue 3,800
January 20 Pay cash for salaries, $11,600.
Dr Wages expense 11,600
Cr Cash 11,600
January 22 Receive cash on accounts receivable, $24,200.
Dr Cash 24,200
Cr Accounts receivable 24,200
January 29 Pay cash on accounts payable, $4,100.
Dr Accounts payable 4,100
Cr Cash 4,100
<u>adjusting entries:</u>
Rent for the month of January has expired.
Dr Rent expense 525
Cr Prepaid rent 525
Supplies remaining at the end of January total $3,500.
Dr Supplies expense 3,300
Cr Supplies 3,300
