1. Enter February transactions in the general journal. 2. Post the transactions to the general ledger. 3. Prepare a trial balance. 4. Journalize and post adjusting entries. 5. Prepare an adjusted trial balance. 6. Prepare an A/P & A/R schedule to verify ending account balances. (The A/R schedule lists customers' names and balances at the end of February. The total of the A/R schedule should equal the A/R balance on the trial balance. Similarly, the A/P schedule lists creditors and the amount owed to each at the end of February. The total of the A/P schedule should equal the balance of A/P on the trial balance.) 7. Prepare the financial statements. 8. Prepare the closing entries and post to the general ledger. Transactions 2/1/X1 Issued check #100 for $215 to MailHouse for postage and handling on a mass marketing letter Sam sent out that afternoon. 2/2/X1 Signed a 1 year lease for office space and paid February's rent of $1,055 by issuing check #101 to Kwant Co. 2/2/X1 Issued check # 102 to Spy Co. for $8,900 to purchase electronic surveillance equipment to observe clients' dates and better understand their dating problems. 2/3/X1 Performed a dating consultation for Dinah Toluvia and billed Dinah $5,000. 2/3/X1 Purchased 6 month's liability insurance issuing check #103 to Travelers Insurance for $1,200. 2/4/X1 Sam's Singles Service received $20,000 and issued shares of common stock to Amanda Friend. 2/5/X1 Received $3,500 total for services performed the previous month. ($500 from Jim Dudley, $2,000 from Paul Gooseman, and $1,000 from Tammy Talkmuch.) 2/7/X1 Hosted Ivy League Speed Dating Night where Ivy League graduates paid $60 each to go on a number of 5 minute "dates." 50 people attended the event and cash was collected from all but five of the participants, who agreed to mail in a check later that week. (The names of the five unpaid participants were: John Good, Brandon Broke, Wendy Jones, Ima Welch, and Skip Townsend.) 2/8/X1 Received an invoice for $500 from SF News & Review for an advertisement that ran in last week's newspapers (invoice # 52A7J). 2/8/X1 Samantha was approached by Cy Burnette, a successful young internet entrepreneur that can't seem to get a second date. Samantha agreed to observe one of Cy's dates and explain what he's doing wrong. 2/9/X1 Paid outstanding invoices to Sun Company $350; Moon Company $500; and Stars Company $1,150 issuing checks #104-106. (The expenses for these invoices were accrued last month.) 2/10/XI Received $120 ($60 from John Good and $60 from Wendy Jones) for the Ivy League Speed Dating night held 2n. 2/11/XI Purchased $800 of office supplies on account from Office Depot (invoice #62309). 2/14/X1 Sam's received invoice #97389 for $800 from Dewey, Cheatem & Howe Law Offices for legal advice provided Sam's Singles. 2/15/X1 Sam's hosted Goth Date Night where participants paid $60 to attend a dinner party and meet other Gothic singles. 40 people attended and all paid at the door. (Sam's changed its credit policy to require cash at the door of special events.) 2/16/X1 Sam's issued check # 107 for $1,630 to Sam & Ella's Catering Co. to pay for refreshments at the Ivy League Speed Dating Night and dinner at Gothic Night. 2/17/X1 Sam's received a $15,000 advance from Percy Pratt for dating consultation services to be provided in February and March. 2/18/X1 Samantha observed one of Cy Burnette's dates and met with him to discuss her observations. Cy wrote Sam's a check for $6,000 for the services. 2/23/X1 Samantha performed a dating consultation for Phil O. Pfangst and billed him $4,000. 2/24/X1 Sam's issued check #108 to pay Office Depot $800 (invoice #62309 from 2/11) and check #109 to pay Dewey, Cheatem & Howe Law Offices $800 (Invoice #97389 from 2/14). 2/25/X1 Sam's issued dividends totaling $1,000 with checks #110-112. 2/27/X1 Received invoice #8783AC15 for $95 from AT&T for February's cell phone service. 2/28/X1 Received invoice #25351 from PG&E for February's power of $102.00. Information for February's Adjusting Entries: . . . Surveillance equipment purchased 2/2 has a 4-year life and a $500 expected salvage value. Sam's uses the straight line method of depreciation. On 2/28/X1, Sam's has supplies on hand of $150. As bookkeeper you earn $2,500, and Samantha earns $4,000 a month. Checks will be issued March 5th for February's work. (For simplicity, assume there are no withholdings.) By the end of February, Samantha had performed 30% of her dating consultations for Percy Pratt (Sam's received an advance from Percy on 2/17). By the end of February, one month's insurance had expired (see 2/3 transaction)
