1. Creat journal entries to record each of February's transaction.

2. Post onto ledger accounts

3. prepare unadjusted trial balance

4. prepare adjusted journal entries

5. prepare an adjusted trial balance

6. prepare in good form the following finanical statements for the year ending in feb 28, 2020

7. prepare closing entries

8. prepare a post closing trial balance

The "xx" (Ex. $6xx) refers to the number as "$600". "xx" = 00

Income tax rate is 17%. Taxes are paid 2 1/2 months after the fiscal year end.

Accounting policy to depreciatuon all building over a 20 year life and all equipment over a 5 year life.

Excellence Assured Business Executive Coaching and Motivational Speakers, Inc. Transactions for February 2020 February 1 The business received cash of $22,000. The corporation issued common stock to the stockholders. February 1 Paid $3,600 for 4 years of insurance. February 1 Received $2,400 from a client for 3 months of service. February 2 The company signed a note payable for $26,200 from the bank, due in one year with 12% annual interest February 5 Paid $25,000 for equipment. I February 6 Purchased supplies on account, $1,6xx. February 15 Paid employee's salaries $2,2xx Summary transactions for the month of February: February 29 Received $8,4xx from customers for services rendered. February 29 Performed services for customers on account $4,650. February 29 Collected cash from customers on account, $1,9xx. February 29 Paid $9xx of the accounts payable. I February 29 Paid the following cash expenses: (1) Advertising, Sxx; (2) Rent, $2,7xx. 5) Post each transaction in the ledger accounts. See illustrations throughout the text chapters. 6) Prepare an unadjusted trial balance. Refer to an example located on page 114 for the Unadjusted Adjustments Adjusted worksheet but make sure you have a Post Closing trial balance by adding two more columns. If you don't want to use the Adjustment columns (DR, CR), make sure your Trial Balance includes these headings - Unadjusted DR CR, Adjusted DR CR, and Post Closing DR CR 7) Prepare adjusting journal entries. Besides the information provided for adjusting entries, review all information provided for any other adjusting entries that may be needed. See examples throughout chapter 3. Excellence Assured Business Executive Coaching and Motivational Speakers, Inc. Transactions for February 2020 Adjusting entries: February 29 Received a $6xx bill for utilities that will be paid in March (record payable in accounts payable) February 29 Accrued employee's salaries $2,2xx (to be paid on March 1). I February 29 Additional adjusting entries hints: (1) An inventory of supplies indicates there is a remaining balance of $6xx. (2) You will need to create another account for interest payable, a current liability (3) The formula to calculate interest expense and payable is principal x interest x time (26,200 x 12 x 1/12) (4) Remember to review the accounting policies for detail on depreciation. All depreciation expense will be recorded in depreciation expense and the corresponding accumulated depreciation accounts. (5) In order to calculate income tax expense, you will need to calculate income. You should have a total of 8 adjusting entries (AJES)