At Richmond Company, the following select transactions occurred in January, the company's first month of operations:

Jan. 1 Paid rent of $1,000 for January.

2 Paid $1,920 for a one-year insurance policy.

5 Paid $1,700 for supplies.

19 Received $6,100 cash for services to be performed in the future.

31 Paid rent of $1,000 for February.

Additional information:

1. On January 31, it is determined that $2,500 of the service revenue has been earned.

2. On January 31, a count of supplies shows that there is $650 of supplies on hand.

Instructions

(a) Assume Richmond records all prepaid costs as expenses, and all revenue collected in advance as revenue.

Journalize the January transactions and post to T accounts. (Note: Posting to the Cash account is not necessary.)

(b) Journalize and post the January 31 adjustments.

(c) Determine the ending balances in each of the accounts.