Assignment task:
On 1 January 2024, Tom Lee started a web design firm, Web Solutions (WS).
The following are the transactions that occur during the first month of operations.
01 Jan. Tom invested $20,000 cash, and a $6,000 computer in the firm.
01 Jan. Tom received $20,000 from his best friend, Dick as a personal loan to him.
01 Jan. Tom invested the $20,000 which he received from Dick as his own investment in the firm.
01 Jan. The firm hired a web-designer for $4,500 per month.
01 Jan. The firm paid $3,000 cash for January and February rental and another $1,500 for the rental deposit. The rental deposit is refundable.
05 Jan. The firm purchased $1,000 of supplies on account from a supplier.
17 Jan. The firm billed a customer $7,000 for a job done.
25 Jan. The firm received $1,000 cash from another customer as advance payment for a job to be performed in February.
31 Jan. The firm received a telephone bill of $200. Arrangement has been made to pay the bill on 6 February via inter-bank transfer.
31 Jan. The firm paid the web-designer's salary for the month.
31 Jan. An inventory count of supplies showed $300 was still available
31 Jan. Depreciation of the computer for the month is $500.
(a) Analyse the above and record all necessary entries (including adjusting entries). Narration is not required.
(b) Present the trial balance of Web Solutions as of 31 January 2024.