Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Barbara Jones opened Barb's Book Business on February 1. You have been hired to maintain the company's financial records. following transactions occurred in February, the

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Barbara Jones opened Barb's Book Business on February 1. You have been hired to maintain the company's financial records. following transactions occurred in February, the first month of operations. a. Received shareholders' cash contributions on February 1 totaling $26,000 to form the corporation; issued 1,000 shares of co stock b. Paid $3,660 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 will be adjusted to its proper balance. c. Purchased and received supplies on February 3 for $500 cash. d. Signed a promissory note on February 4, payable in two years; deposited $15,400 in the company's bank account e. On February 5, paid cash to buy equipment for $5,700 and land for $9,700 f Placed an advertisement in the local papet on February 6 for $795 cash. g. Recorded sales on February 7 totaling $2,700: $2,310 was in cash and the rest on accounts receivable h. Collected accounts receivable of $80 from customers on February 8. . On February 9, repaired one of the computers for $219 cash. TIP: Most repairs involve costs that do not provide additional future economic benefits. J Incurred and paid employee wages on February 28 of $705. Required 1. Prepare the journal entry for each of the above transactions. 2. Pos t the transaction activity from requirement 1 to the T-Accounts below. All accounts begin with zero balances because this is 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 18 percent earned by a close competitor

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Frank Woods Business Accounting Volume 1

Authors: Frank Wood, Alan Sangster

11th Edition

0273712128, 978-0273712121

More Books

Students also viewed these Accounting questions