PRACTICE SET Processing Business Papers to Financial Statements Basic Level HAIR PORT LANDING BASIC FACTS Tomas Mueller decided to start an old-fashioned barber shop, dba ("doing business as") Hair Port Landing. He began business on January 1, 20X1. He initially invested $25,000 cash from personal funds, and borrowed an additional $10,000 from a local bank. Tomas immediately leased space, and ordered and received various items of furniture, fixtures, and equipment. Furniture and fixtures are anticipated to a have a 10-year life. Hair care equipment has a 2- year life. Many additional facts can be learned by examining the accompanying business papers -- invoices, bills, etc. relating to purchases -- checks relating to disbursements -- and the copies of the business's deposit tickets. With the exception of the deposits on January 1, all other receipts are related to providing services to clients.
OBJECTIVE Your objective is typical of that faced by every small business! Examine the accompanying business papers and prepare Hair Port Landing's general journal, ledger, trial balance, adjusted trial balance, and financial statements for January.