Tamara Zeevah opened a hair salon recently, but did not maintain a formal set of accounting records during the first week of her business€™s operations. Instead, she simply maintained a checkbook for the business. Following are the entries included in Zeevah€™s checkbook for the period January 6€“January 10, 2009:

Required:
(a) Prepare the necessary general journal entries for Zeevah€™s Hair Salon for the period January 6€“January 10.
(b) Prepare T-accounts for Zeevah€™s Hair Salon and post the journal entries for the period January 6€“January 10 to these accounts. Determine the account balances as of January 8.
(c) Verify that the general ledger accounts are in balance.
(d) In a short memo to Zeevah, explain why her current method of record keeping does not provide her with the information she needs to monitor and evaluate the financial status of her business. Be sure to indicate whether her checkbook will record all transactions that affect her business in any given period.

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Date Transaction Jan. 6 Bank loan Jan. 7 Rent to landlord for Deposits Withdrawals $40,000 January $1,000 Jan. 7 Bought hair care products 4,000 Jan. 7 Bought equipment Jan. 8 Hairstyling revenues earned 350 Jan. 10 Paid shampoo person Jan. 10 Hairstyling revenues 9 earned 800