Soft ware Advisors Limited was organized on January 1, 2015. The company plans to use the following chart of accounts:

The company had the following transactions in the month of January:
January 2 Issued 1,000 common shares for $15 each.
3 Borrowed $50,000 from the bank on a long-term loan.
4 Finalized the lease for office space and paid the first month's rent of $3,000.
5 Purchased $40,000 of equipment for $20,000 cash and $20,000 on account.
10 Paid for an advertisement in a local paper, $500.
11 Purchased supplies on account, $1,000.
13 Paid for several advertising spots on the local radio station, $3,000.
15 Paid employees $7,500 for the first two weeks of work.
17 Summarized and recorded the billings to clients for the first two weeks of January. Billings totalled
$15,000. These amounts are due by the 10th of the next month.
20 Paid $1,000 for the current month's office expenses.
24 Received $10,000 from clients in partial settlement of accounts billed on the 17th.
30 Paid annual insurance policy with coverage up to February 1, 2016, for $6,000.
30 Summarized and recorded the billings to clients for the last two weeks of January. Billings totalled $18,000. These amounts are due by the 28th of the next month.
31 Paid employees $7,500 for the last two weeks of work.
31 Made a payment to the bank of $300 for interest on the bank loan and $700 to pay on the amount owing for the bank loan.
31 Paid Canada Revenue Agency $1,200 for an income tax instalment.
Instructions
(a) Journalize the January transactions.
(b) Set up T accounts and post the journal entries prepared in (a).
(c) Prepare a trial balance at January 31.
(d) Prepare an income statement, statement of changes in equity, and statement of financial position for January.

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Retained Earnings Service Revenue Aaleertising Epe Salaries Expense Interest Expense Office Expense Rent Expense Income Tax Expense Cash Accounts Receivable 1000 1100 1200 Supples 1300 Prepaid Insurance 2000 Equipment 3000 3100 4000 4500 5000 7000 7100 7200 7300 7400 9000 Accounts Payable Bank Loan Payable Common Shares