During January, the following transactions were completed for Karnes City Cleaners, Inc (KCCI).

1	On January 1, KCCI issuedstock in exchange for $20000 cash.

2	On January 2, KCCI purchased a truck for $14,000, paying$2,000 cash down and signinga 5-year, 8% note for the remaining $12,000.

3	On January 3, KCCI purchased cleaning supplies for $800 on account to be used over severalmonths.

4	On January 5, KCCI prepaid $3600 for a one-year insurance policy. Coverage began on January 1.

5	On January 10, KCCI sent invoices to customers amounting to $4500 for completed cleaning services.

6	On January 15, KCCI paid $2400 for employee salaries for work performed in January.

7	On January 16, KCCI collected $3375 from customers billed on January 10.

8	On January 20, KCCI collected $1,000 in advancefrom a customer for February cleaning services.

9	On January 31, KCCI makes a cash payment on truck note for $500.

10	On January 31, KCCI paid a cash dividend of $100.

For the above ten transactions, Preparethe Monthly Journal Entries, Post to the General Ledger (T-Accounts), and Prepare an Unadjusted Trial Balance.

Atthe end of January, KCCI analyzed the followingtransactions for which journal entries have not yet been prepared.

1	An inventory count at the closeof business on January 31 reveals that $250 of supplies are still on hand.

2	Insurance of $300 expires each month.

3	The truck has a useful life of 5 years (60 months)and has a salvage valueof $2,000. KCCI uses SL Depreciation

4	Completed cleaning services for customers for a total of $2500, but have not yet sent out the invoices.

5	Interest has accrued on the note, but will not be paid until later.

For the above five transactions, prepare the Adjusting Journal Entries, Post to the GeneralLedger, and Prepare an AdjustedTrial Balance. You should only have one set of T-Accounts. Add to the ones previously prepared and create new t-accounts when needed.

Answer rating: 100% (QA)

Monthly Journal Entries January 1 Debit Cash 20000 Credit Common Stock 20000 January 2 Debit Truck 14000 Credit Cash 2000 Credit Note Payable 12000 Ja... View the full answer