Poundmaker Accounting Services began operations on January 1, 2014 Set up the following T accounts, which show balances at January 31 Cash $890 Accounts Receivable $1,200 Prepaid Insurance $0 Computer Equipment $480 Accounts Payable $250 Notes Payable $0 Neil Poundmaker, Capital $800 Neil Poundmake...

There is no entry to be recorded for February 21 Analysis component Revenue rec ...

Poundmaker Accounting Services began operations on January 1, 2014. Set up the following T-accounts, which show balances

Question:

Poundmaker Accounting Services began operations on January 1, 2014. Set up the following T-accounts, which show balances at January 31: Cash $890; $1,200; Prepaid Insurance $0; Computer Equipment $480; $250; Notes Payable $0; Neil Poundmaker, Capital $800; Neil Poundmaker, Withdrawals $0; Service Revenue $2,600; Wages Expense $1,080. The activities below occurred during February. Identify the transactions and record them directly in the T-accounts. Use the dates beside the transactions to identify the entries. Also, determine the balance of each account.
Feb. 2 Neil Poundmaker provided services to a customer and collected cash of $3,100.
10 Purchased $7,600 of new computer equipment for the business by signing a note.
12 Performed $15,000 of accounting services for a client on account.
14 Paid the $4,000 annual insurance premium covering the next 12 months.
18 Billed a client $1,900 for work performed today.
20 Collected $2,400 from a credit customer.
21 Poundmaker ordered $1,600 in new accounting software from a local vendor; it will be paid for when it arrives in about two weeks.
22 Collected $10,000 from the customer of February 12.
23 Paid half of the outstanding Poundmaker withdrew $1,000 cash for personal use.
26 Paid part-time employee wages of $1,600.
Analysis Component: Regarding February 12, which must be considered in determining the appropriate accounting treatment for this item? GAAP
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