Answer Happy

1. Ms. Anna started her business ("Anna Car Repairing Shop") on January 1, 2018. During the first month of its operations, the business engaged in the following transactions: Date Transactions Jan 1 Anna invested cash $100,000 as initial capital to start the business. Jan 2 An amount of $36,000 was paid as advance rent for three months. Jan 3 Paid $60,000 cash on the purchase of equipment costing $80,000. The remaining amount was recognized as note payable. Jan 4 Purchased office supplies costing $17,600 on account. Jan 13 Provided services to its customers and received $28,500 in cash. Jan 13 Paid the accounts payable on the office supplies purchased on January 4. Jan 14 Paid wages to its employees for the month of January, aggregating $19,100. Jan 18 Provided $54,100 worth of services to its customers. They paid $32,900 and promised to pay the remaining amount in the next month. Jan 23 Received $15,300 from customers for the services provided on January 18. Jan 25 Received $4,000 as an advance payment from customers. Jan 26 Purchased office supplies costing $5,200 on account. Jan 28 Paid water bill of $19,000 for January Jan 31 Paid $5,000 advertising expense. Jan 31 Received electricity bill of $2,470 for January. Jan 31 Received telephone bill of $1,494 for January Jan 31 Miscellaneous expenses paid during the month totaled $3,470. Instructions: a) Journalize the transactions with explanations (Ignore the reference numbers). (16) b) Post the transactions in the ledger account. (16) c) Prepare a Trial Balance for Jan 31, 2018. (10) d) Prepare an Income Statement and a classified Balance for Jan 31, 2018 based on the information available in the trial balance. (10)