Part III USING INFORMATION PROVIDED FROM PART 2 COMPLETE THE FOLOWING:

Carl Redmon decided to expand his business and begin selling accounting software, as well as providing consulting services. During January, Carl Redmon Consulting completed these transactions:

Jan 2 Completed a consulting engagement and received cash of $7,200.

2 Prepaid three months office rent, $1,500.

7 Purchased software inventory on account, $3,900, plus freight in, $100.

15 Withdrew $500 for personal use.

18 Sold software on account, $1,100 (cost $700).

19 Consulted with a client for a fee of $900 on account.

20 Paid the secretarys salary for the month. ($4,000 for 30 days)

21 Paid on account, $2,000.

24 Paid utilities, $300.

28 Sold software for cash, $600 (cost $400).

31 Recorded these adjusting entries:

a) Accrued salary expense.

b) Depreciation of computer and furniture.

c) Expiration of prepaid rent.

d) Expiration of prepaid insurance.

e) Physical count of inventory, $2,800.

f) Earned the remaining revenue from December 22.

g) Redmon estimates that 3% of inventory sold will be returned

Prepaid Insurance is for 2 years

Furniture originally cost $4,500. The furniture should last for five years.

Computer originally paid $2,400. It is expected to remain in service for five years, and have a $400 salvage value at the end of its useful life.

Required

1) Prepare journal entries for the above transactions and post these entries to the ledger.

2) Prepare adjusting entries on January 31 and post to the ledger.

3) Prepare an adjusted trial balance

4) Prepare closing entries at January 31, 2018 and post to the ledger.

5) Prepare a post-closing trial balance on January 31, 2018.

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Redmon Consulting Adjusted Trial Balance December 31, 2017
	Balance
Account Title	Debit	Credit
Cash	$16350
Accounts receivable	$1500
Prepaid insurance	$5750
Supplies	$100
Office equipment	$2400
Accumulated depreciation- Office equipment		$33
Furniture	$4500
Accumulated depreciation- Furniture		$75
Accounts payable		$4700
Salaries payable		$1333
Unearned service revenue		$800
Redmon, Capital		$25000
Redmon, Withdrawals	$1600
Service Revenue		$3300
Insurance expense	$250
Supplies Expense	$400
Rent Expense	$750
Utilities expense	$200
Salaries expense	$1333
Depreciation Expense-Office Equipment	$33
Depreciation Expense-Furniture	$75
Total	$35241	$35241