Barbara Jones opened Barbs Book Business on February 1 You have been hired to maintain the companys financial records The following transactions occurred in February, the first month of operations a Received shareholders cash contributions on February 1 totaling $28,000 to form the corporation issued 1,000 shares of common stock b Paid $2,970 cash on February 2 for three months rent for office space TIP For convenience, simply record the full amount of the payment as an asset (Prepaid Rent) At the end of the month, this account will be adjusted to its proper balance c Purchased and received supplies on February 3 for $655 cash d Signed a promissory note on February 4, payable in two years deposited $19,300 in the companys bank account e On February 5, paid cash to buy equipment for $8,000 and land for $11,300 f Placed an advertisement in the local paper on February 6 for $705 cash g Recorded sales on February 7 totaling $3,450 $1,680 was in cash and the rest on accounts receivable h Collected accounts receivable of $115 from customers on February 8 i On February 9, repaired one of the computers for $170 cash TIP Most repairs involve costs that do not provide additional future economic benefits j Incurred and paid employee wages on February 28 of $715 Required 1 Prepare the journal entry for each of the above transactions 2 Post the transaction activity from requirement 1 to the T Accounts below All accounts begin with zero balances because this is the first month of operations 3 Prepare an unadjusted trial balance at the end of February 4 a Refer to the revenues and expenses shown on the unadjusted trial balance Based on this information, calculate preliminary net income and net profit margin 4 b Determine whether the net profit margin is better or worse than the 19 percent earned by a close competitor View transaction list View journal entry worksheet No T General Journal 28,000 Common Stock 28,000 Prepaid Rent 2,970 Cash 2,970 655 Cash 655 Cash 19,300 Notes Payable (long term) 19,300 Equipment Land 8,000 11,300 Cash 19,300 (0 Advertising Expense Cash 705 705 Cash Accounts Receivable 1,680 1,770 Sales Revenue 3,450 Cash 115 Accounts Receivable 115 (0i) Repairs and Maintenance Expense 219 Cash 219 Salaries and Wages Expense 715 Cash 715 Req 1 Req 2 Req 3 Req 4A Req 4B Post the transaction activity from requirement 1 to the T Accounts below All accounts begin with zero balances because this is the first month of operations Cash Beg Bal a) d) Beg Bal 28,00 19,300 1,680 19,300 e) h) End Bal End Bal 24,531 upplies repaid Rent Beg Bal c) Beg Bal 655 End Bal 60 End Bal Beg Bal e) Beg Bal 11,300 End Bal 11,300 End Bal Notes Payable (I Beg Bal Beg Bal End Bal End Bal Beg Bal c) Beg Bal 655 End Bal 60 End Bal Beg Bal e) Beg Bal 11,300 End Bal 11,300 End Bal Notes Payable (long term) Common Stock Beg Bal Beg Bal End Bal End Bal Sales Advertising Expense Beg Bal Beg Bal End Bal End Bal Salaries and Wages Expense Repairs Maintenance Expense Beg Bal Beg Bal End Bal End Bal K Req 1 Req 3 Complete this question by entering your answers in the tabs below Req 1 Req 2 Req 3 Req 4A Req 4B Prepare an unadjusted trial balance at the end of February BARB'S BOOK BUSINESS Unadjusted Trial Balance ccount Name Cash Accounts Receivable Supplies Prepaid Rent Land Equipment Notes Payable (long term) Common Stock Sales Revenue Advertising Expense Salaries and Wages Expense Repairs and Maintenance Expense Total Debit Credit K Req 2 Req 4A Complete this question by entering your answers in the tabs below Req 1 Req 2 Req 3 Req 4A Req 4B Determine whether the net profit margin is better or worse than the 19 percent earned by a OBetter Worse K Req 4A Req 4B

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Barbara Jones opened Barbs Book Business on February 1. You have been hired to maintain the companys financial records. The following transactions occurred in February,

Barbara Jones opened Barbs Book Business on February 1. You have been hired to maintain the companys financial records. The following transactions occurred in February, the first month of operations.

a. Received shareholders cash contributions on February 1 totaling $28,000 to form the corporation; issued 1,000 shares of common stock.
b. Paid $2,970 cash on February 2 for three months rent for office space.
TIP: For convenience, simply record the full amount of the payment as an asset (Prepaid Rent). At the end of the month, this account will be adjusted to its proper balance.
c. Purchased and received supplies on February 3 for $655 cash.
d. Signed a promissory note on February 4, payable in two years; deposited $19,300 in the companys bank account.
e. On February 5, paid cash to buy equipment for $8,000 and land for $11,300.
f. Placed an advertisement in the local paper on February 6 for $705 cash.
g. Recorded sales on February 7 totaling $3,450; $1,680 was in cash and the rest on accounts receivable.
h. Collected accounts receivable of $115 from customers on February 8.
i. On February 9, repaired one of the computers for $170 cash.
TIP: Most repairs involve costs that do not provide additional future economic benefits.
j. Incurred and paid employee wages on February 28 of $715.

Required:

1. Prepare the journal entry for each of the above transactions.
2. Post the transaction activity from requirement 1 to the T-Accounts below. All accounts begin with zero balances because this is the first month of operations.
3. Prepare an unadjusted trial balance at the end of February.
4-a. Refer to the revenues and expenses shown on the unadjusted trial balance. Based on this information, calculate preliminary net income and net profit margin?
4-b. Determine whether the net profit margin is better or worse than the 19 percent earned by a close competitor.

View transaction list View journal entry worksheet No T General Journal 28,000 Common Stock 28,000 Prepaid Rent 2,970 Cash 2,970 655 Cash 655 Cash 19,300 Notes Payable (long-term) 19,300 Equipment Land 8,000 11,300 Cash 19,300 (0 Advertising Expense Cash 705 705 Cash Accounts Receivable 1,680 1,770 Sales Revenue 3,450 Cash 115 Accounts Receivable 115 (0i) Repairs and Maintenance Expense 219 Cash 219 Salaries and Wages Expense 715 Cash 715 Req 1 Req 2 Req 3 Req 4A Req 4B Post the transaction activity from requirement 1 to the T-Accounts below. All accounts begin with zero balances because this is the first month of operations. Cash Beg. Bal a) d) Beg. Bal 28,00 19,300 1,680 19,300 e) h) End. Bal End. Bal 24,531 upplies repaid Rent Beg. Bal c) Beg. Bal 655 End. Bal 60 End. Bal Beg. Bal e) Beg. Bal 11,300 End. Bal 11,300 End. Bal Notes Payable (I Beg. Bal Beg. Bal End. Bal End. Bal Beg. Bal c) Beg. Bal 655 End. Bal 60 End. Bal Beg. Bal e) Beg. Bal 11,300 End. Bal 11,300 End. Bal Notes Payable (long-term) Common Stock Beg. Bal Beg. Bal End. Bal End. Bal Sales Advertising Expense Beg. Bal Beg. Bal End. Bal End. Bal Salaries and Wages Expense Repairs & Maintenance Expense Beg. Bal Beg. Bal End. Bal End. Bal K Req 1 Req 3 Complete this question by entering your answers in the tabs below Req 1 Req 2 Req 3 Req 4A Req 4B Prepare an unadjusted trial balance at the end of February BARB'S BOOK BUSINESS Unadjusted Trial Balance ccount Name Cash Accounts Receivable Supplies Prepaid Rent Land Equipment Notes Payable (long-term) Common Stock Sales Revenue Advertising Expense Salaries and Wages Expense Repairs and Maintenance Expense Total Debit Credit K Req 2 Req 4A > Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4A Req 4B Determine whether the net profit margin is better or worse than the 19 percent earned by a OBetter Worse K Req 4A Req 4B