1. Create journal entries to record each of February's transactions. 2. Post onto ledger accounts. 3. Prepare unadjusted trial balance. 4. Prepare adjusted journal entires.
1. Create journal entries to record each of February's transactions.
2. Post onto ledger accounts.
3. Prepare unadjusted trial balance.
4. Prepare adjusted journal entires.
5. Prepare an adjusted trial balance.
6. Prepare in good form the following finanical statements for the year ending in Feb. 28, 2017.
7. Prepare closing entries.
8. Prepare a post closing trial balance.
The "xx" (Ex: $1,9xx) just refers to the number as "$1,900".The "xx" = 00
Excellence Assured Business Executive Coaching and Motivational Speakers, Inc. Transactions for February 2017 February 1 The business received cash of $19,000. The corporation issued common stock to the stockholders February Paid $3,600 for 2 years of insurance February 1 Received $1,500 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 $24,000 for equipment. February 6 Purchased supplies on account, $1,1xx. February 15 Paid employee's salaries $2,3xx Summary transactions for the month of February: February 28 Received $8,6xx from customers for services rendered. February 28 Performed services for customers on account $4,650 February 28 Collected cash from customers on account, S1,9xx. February 28 Paid S9xx of the accounts payable February 28 Paid the following cash expenses: (1) Advertising, $8xx; (2) Rent, $2,2xx. 5) Post cach 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 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 Excellence Assured Business Executive Coaching and Motivational Speakers, Inc. Transactions for February 2017 Adjusting entries: February 28 Received a S5xx bill for utilities that will be paid in March (record payable in accounts payable). February 28 Accrued employee's salaries $2,3xx (to be paid on March 1). February 28 Additional adjusting entries hints (1) An inventory of supplies indicates there is a remaining balance of S5xx. (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.12x 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
