Analyze the transactions.

Calculate the account balances as of Jan. 31:
31-Dec	Local sells shares for $175,000 cash.
10-Jan	Local buys $93,000 of equipment for cash.
12-Jan	Local pays rent for the month of January of $6,000.
14-Jan	Local issues a $25,000 10-year bond
15-Jan	Local buys $25,000 of inventory for cash.
18-Jan	Local sells $12,000 worth of inventory for $34,000 cash.
20-Jan	Local sells $11,000 worth of inventory for $31,000 on account
22-Jan	Local incurs salary expense of $18,000
28-Jan	Local pays employees $13,000 for salaries already incurred.
30-Jan	Local incurs and pays $625 interest on the bond.
30-Jan	Local pays a cash dividend of $500.
30-Jan	Local incurs tax expense of $3,000.
30-Jan	Local incurs depreciation expense of $1,500 on the equipment.

Answer rating: 100% (QA)

To calculate the account balances as of January 31 we need to analyze each transaction and update the relevant accounts Here are the calculations for ... View the full answer