Problem: 3-36B (Comprehensive problem including depreciation)

Vox Company started the period with cash of $22,000, common stock of $12,000, and retained earnings of $10,000. Vox engaged the following transactions in 2016:

Transactions in 2016:

1. On January 1, 2016, purchased a computer for $7,500 cash. 2. On Febuary 1, paid $6,600 cash for rent for a 12-month period beginning immeadiately. 3. Purchased $1,100 of supplies for cash. 4. Provided $56,000 of services for cash. 5. Paid $18,000 cash for salaries exspense. 6. On May 1, recieved $9,000 for services that will be performed over the next 12 months.

Information for adjusting entries:

7. The computer had an estimated life of three years and a $2,400 salvage value. 8. Recognized the expired rent. 9. An inventory of supplies showed $120 of supplies on hand as of December 31. 10. Recognized the revenue associated with Event 6 as of December 21

Required:

a. Record the 10 events in the general journal format.

b. Prepare an income statement, balance sheet, and statement of cash flows.