Assignment Outline

1. This is a continuation of your work from Part One.
2. Record the transactions and adjusting entries assigned in the multiple part assignment.

February Transactions:

During the month of February 2019, the following transactions occur.

1 The owner hires Joshua Smith as an assistant at an hourly wage of $8 to help with cookie making and some administrative duties.

5 The owner teaches the class that was booked on January 25. The balance outstanding is received. (Hint: This entry should have three accounts)

8 The company receives a check for the amount due from Jefferson preschool for the class given on January 28.

9 The company receives $750 in advance from Stoughtons local school board for five classes that the company will give during February and March.

15 Pays the cell phone invoice outstanding at January 28.

16 Issues a check to Websites and More Inc. for the amount owed for the design of the website.

19 Receives a deposit of $60 on a cookie class scheduled for early March at the YMCA.

23 Additional revenue earned during the month for cookie-making classes amounts to $4,000 from Madison school system. $3,000 in cash has been collected and $1,000 is still outstanding.

23 Additional supplies of sugar, flour, and chocolate chips purchased during the month amount to $1,250 cash.

23 Issues a check to the assistant for $800. Her assistant worked approximately 100 hours from the time in which she was hired until February 23.

28 Pays a dividend of $500 to the common shareholder (owner). As of February 28, the companys following adjusting entry data are provided.

February Adjusting Entry Data:

Adjusting entries for February are also recorded in the same area, but be sure to check the box for adjusting entries. Date all entries as of 2/28/19.

1. Depreciation is recorded on the baking equipment purchased in January. The baking equipment has a useful life of 5 years. Assume that 2 months worth of depreciation is required.

2. Amortization (which is similar to depreciation) is recorded on the website. (Credit the Website account directly for the amount of the amortization.) The website is amortized over a useful life of 2 years and was available for use on February 1.

3. Interest on the note payable is accrued. (Assume that 1.5 months of interest accrued during January and February.) Round to nearest dollar.

4. One months worth of insurance has expired.

5. The owner is unexpectedly telephoned on February 27 to give a cookie class at the neighborhood community center on February 28. In early March, the company sends an invoice for $450 to the community center.

6. A count reveals that $1,025 of baking supplies were used.

7. A cell phone invoice from AT&T is received for $75. The invoice is for services provided during the month of February and is due on March 15.

8. Because the cookie-making class occurred unexpectedly on February 28 and is for such a large group of children, the assistant helps out. Her assistant worked 7 hours at a rate of $8 per hour. She will not be paid until the next month.

9. An analysis of the unearned revenue account reveals that two of the five classes paid for by Stoughtons school board on February 9 still have not been taught by the end of February. The $60 deposit received on February 19 for another class also remains unearned.

At the end of recording the February transaction and adjusting entries, check the account balances per your QuickBook trial balance with the check figures available in Blackboard. When amounts are in agreement submit your QuickBooks

10/08/15 Journal May 2014 Adj Name Memo Account Debit Credit Trans # Type 1 General Journal Date 05/08/2014 Num 1 500.00 Cash in exch... Cash in exch... Cash Common Stock 500.00 500.00 500.00 95.00 2 General Journal 05/11/2014 2 Purchased fr... Purchased fr... Advertising Expense Cash 95.00 95.00 95.00 125.00 3 General Journal 05/14/2014 3 Supplies fro... Supplies fro... Baking Supplies Cash 125.00 125.00 125.00 300.00 4 General Journal 05/15/2014 4 Transfer of M... Baking Equipment Transfer of M... Common Stock 300.00 300.00 300.00 2,000.00 5 General Journal 05/16/2014 5 Note from Gr... Note from Gr... Cash Notes Payable 2,000.00 2,000.00 2,000.00 900.00 6 General Journal 05/25/2014 6 Additonal Eq... Additonal Eq... Baking Equipment Cash 900.00 900.00 900.00 60.00 7 General Journal 05/17/2014 7 Down Payme... Cash Down Payme... Unearned Service ... 60.00 60.00 8 General Journal 60.00 100.00 05/26/2014 8 First School ... First School ... Cash Service Revenue 100.00 100.00 100.00 600.00 9 General Journal 05/28/2014 9 Websites and More From Websit... Website From Websit... Accounts Payable 600.00 600.00 600.00 1,200.00 10 General Journal 05/28/2014 10 1 year insura... 1 year insura... Prepaid Insurance Cash 1,200.00 1,200.00 1,200.00 300.00 11 General Journal 05/28/2014 11 Jefferson Preschool Jefferson Preschool Taught Class... Taught Class... Accounts Receivable Service Revenue 300.00 300.00 300.00 50.00 12 General Journal 05/28/2014 12 AT&T May Cell Pho... Cell Phone Expense May Cell Pho... Accounts Payable 50.00 50.00 50.00 TOTAL 6,230.00 6,230.00 10/08/15 Journal May 2014 Adj Name Memo Account Debit Credit Trans # Type 1 General Journal Date 05/08/2014 Num 1 500.00 Cash in exch... Cash in exch... Cash Common Stock 500.00 500.00 500.00 95.00 2 General Journal 05/11/2014 2 Purchased fr... Purchased fr... Advertising Expense Cash 95.00 95.00 95.00 125.00 3 General Journal 05/14/2014 3 Supplies fro... Supplies fro... Baking Supplies Cash 125.00 125.00 125.00 300.00 4 General Journal 05/15/2014 4 Transfer of M... Baking Equipment Transfer of M... Common Stock 300.00 300.00 300.00 2,000.00 5 General Journal 05/16/2014 5 Note from Gr... Note from Gr... Cash Notes Payable 2,000.00 2,000.00 2,000.00 900.00 6 General Journal 05/25/2014 6 Additonal Eq... Additonal Eq... Baking Equipment Cash 900.00 900.00 900.00 60.00 7 General Journal 05/17/2014 7 Down Payme... Cash Down Payme... Unearned Service ... 60.00 60.00 8 General Journal 60.00 100.00 05/26/2014 8 First School ... First School ... Cash Service Revenue 100.00 100.00 100.00 600.00 9 General Journal 05/28/2014 9 Websites and More From Websit... Website From Websit... Accounts Payable 600.00 600.00 600.00 1,200.00 10 General Journal 05/28/2014 10 1 year insura... 1 year insura... Prepaid Insurance Cash 1,200.00 1,200.00 1,200.00 300.00 11 General Journal 05/28/2014 11 Jefferson Preschool Jefferson Preschool Taught Class... Taught Class... Accounts Receivable Service Revenue 300.00 300.00 300.00 50.00 12 General Journal 05/28/2014 12 AT&T May Cell Pho... Cell Phone Expense May Cell Pho... Accounts Payable 50.00 50.00 50.00 TOTAL 6,230.00 6,230.00