Question & Answer: Jan 1st Owner invest 15,000 in company in cash and 4,000 in equipment…..

Jan 1st Owner invest 15,000 in company in cash and 4,000 in equipment

Jan 2nd Building purchased for $500,000 using a long-term note payable

Jan 3rd Wages paid to employees of 34,000

Jan 4th Company earns 2,000 in service revenue

Jan 5th company received a bill for rent on warehouse due in 15 days for 5,000

Jan 7th the bill that was received on Jan 5th is paid

Jan 9th Company earns 5,000 in service revenue

Jan 11th supplies are purchased for 2,000 cash

Jan 15th company pays insurance bill of 500 dollars (assume bill is received and paid simultaneously

Jan 18th bill received for cleaning services that have already been provided to the company of $800

Jan 22nd rent paid on a storage facility of $2,000 (assume bill is received and paid simultaneously)

Jan 25th company receives service revenue of $8,000

Jan 30th wages are paid to employees for work that has already been completed of $2,000

Step 1: Journalize the transactions for the month

Step 2: Open T-Charts for each account and transfer info from journal

Step 3: Do a trial balance in excel

Step 4: Close the temporary accounts

Step 5: create a basic income statement and balance sheet