The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2012.

The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2012.

Account Title                       Debits              Credits

Cash                                     5,000

Accounts receivable               2,000

Inventory                               5,000

Equipment                          11,000

Accumulated depreciation--equipment               3,500

Accounts payable                                           3,000

Common stock                                              10,000

Retained earnings                                            6,500

Sales revenue                                                    -0-

Cost of goods sold                                             -0-

Wages expense                                                 -0-

Rent expense                                                    -0-

Advertising expense                                         -0-     

  Totals                            23,000                    23,000

The following transactions occurred during January 2013:

Jan. 1   Sold merchandise for cash, $3,500. The cost of the merchandise was $2,000. The company uses the perpetual inventory system.

       2     Purchased equipment on account for $5,500 from the Strong Company.

       4     Received a $150 bill from the local newspaper for an advertisement that appeared in the paper on January 2.

       8     Sold merchandise on account for $5,000. The cost of the merchandise was $2,800.

     10   Purchased merchandise on account for $9,500.

     13   Purchased equipment for cash, $800.

     16   Paid the entire amount due to the Strong Company.

     18   Received $4,000 from customers on account.

     20   Paid $800 to the owner of the building for January’s rent.

    30   Paid employees $3,000 for salaries for the month of January.

    31  Paid a cash dividend of $1,000 to shareholders.

Requirements:

1.  Set up T-accounts and enter the beginning balances as of January 1, 2013.

2.  Prepare general journal entries to record each transaction. Omit explanations.

3.  Post the entries to T-accounts.

4.  Prepare an unadjusted trial balance as of January 31, 2013.