Analyze and journalize the transactions below as they occur using company's chart of accounts.

Feb 1. Paid the January phone bill of $250. [Hint: The telephone expense was recognized in January and a liability was recorded. The bill needs to be paid now in Feb.

Feb 1. Bought $18,000 of raw materials on credit, terms 2/10, N/30.

Feb. 1 Office equipment costing $10,000 was sold for cash in the amount of $15,000. Remember, you need to remove the accumulated depreciation for that equipment.

Feb. 2 Received $50,000 cash in advance from a new customer for several new jobs to be built in the coming year.

Feb. 3 Purchased $12,000 of raw materials on account, terms 3/20, N/30.

Feb. 4 Started the first job for the new customer and requisitioned and used materials: Job #1 Direct materials of $8,000 & Indirect materials of $3,000.

Feb. 5 Sold $42,000 of computers on credit. Cost = $18,580.

Feb. 6 Paid the January utility bill of $600. [ The expense was recorded in Jan. Refer to Feb transaction]

Feb. 7 Paid the repair invoice of Jan 26 in the amount of $655. [Expense was recorded in January]

Feb 8 Collected $10,000 on the account receivable due which was created in January

Feb. 9 Issued 1000 shares of common stock for $18,000

Feb. 10 Paid the balance due of $1,500 for January 5 purchase of office supplies on account. Refer to Feb. 1 transaction

Feb. 12 Paid the invoice for $18,000 dated Feb. 1 [verify the terms of sale]

Feb. 13 Sold $20,000 of computers on account. Cost of merchandise is $5,850.

Feb. 14 Paid the semi-monthly payroll, $2,500 if direct labor for Job#1 (250 hours), and $400 for indirect labor (40 hours), and $1,100 as Salary expense [for administrative and selling salaries]. The amounts withheld are $500 for income taxes and $350 for FICA taxes. PLEASE NOTE: A second journal entry for the employers portion of the payroll taxes must be recorded. This includes matching the FICA taxes, .8% for Federal Unemployment taxes and 5.4% for State Unemployment taxes.

Feb 15 Declared and paid dividends of $6,000

Feb 16 Customer returned a computer, original sales price was $5,000 and the COGS was $1,200

Feb 17 Collected $42,000 on account for the sale dated Feb. 2

Feb 17 Purchased $10,000 of supplies on account.

Feb 21 Paid the raw materials invoice of $12,000 dated Feb. 3 with discount

Feb 22 Record the liability for payroll for the second half of Feb, totaling $4,000. [Information is the same as the Feb. 14 entry] See the Feb 14 entry for additional information.

Feb 24 Received the telephone bill for Feb of $800 of which half is charged to manufacturing overhead.

Feb 25 Received the utility bill for Feb of $500 of which half is charged to manufacturing overhead.

Feb 26 The petty cash had these receipts: Postage-$44, Misc Expense-$77 and Freight-Out $88. The box had a total of $295 in cash left at the end of the month. Record the entry to reimburse the petty cash box for the amount needed and to record the expense according to the receipts.

Feb 27 Estimated annual manufacturing overhead cost of $50,000 and 5,000 estimated direct labor hours. Use these amounts to calculate the predetermined MOH rate. Use that rate to calculate and record the applied MOH [Hint: The actual hours for the jobs are detailed in the payroll transactions of Feb 14 and 22]

Feb. 27 Completed Job 1

Feb. 28 Delivered Job 1 to the customer, sales price is $26,000, previously paid by the customer in advance. Dont forget to record COGS for this job.