Charles Price, a connoisseur of fine chocolate, opened Charles' Fine Chocolate Co. in Stowe, VT, on February 1,2023, by investing $30,000 in cash into the business. The shop specializes in a selection of gourmet chocolate candies and a line of gourmet ice cream. You have been hired as manager. Your duties include maintaining the store's financial records. On February 1, Charles paid three months' rent for the store in advance at $2,000 per month. That same day, Charles purchased supplies for the store in the amount of $450 in cash from the Stowe Supply Co. The store received a candy delivery from the Green Mountain Chocolate Factory worth $10,000 on February 1 , just in time to open the store. Charles placed the order on January 15. Charles purchased the candy on credit because the store was starting up. The bill for the candy is due in 60 days. Charles took out an insurance policy to cover the store for $2,400. This is an annual policy that Charles paid for all at once on February 1. In order to have enough cash to pay employees and purchase additional supplies and equipment for the store, Charles took out a loan from the Chittenden County bank of $24,000 on February 2. The loan is due in 2 years. As the new employee responsible for maintaining the store's accounting records, you will need a computer for recordkeeping and inventory tracking. You expressed your concern to Charles, and on February 3, he purchased a computer costing $5,000. Charles pays cash for the computer. That same day, Charles purchases furniture and fixtures for the store (shelving to display the chocolates, other display cases, etc.) for $18,500. You determine that the computer's useful life is three years, and the useful life of the furniture and fixtures is five years. Charles decides to pay cash for the furniture and fixtures as well. In order to let people in Stowe know about his new store, Charles takes out an advertisement in the Stowe Gazette on February 3 announcing the store's grand opening. The advertisement cost \$1,000. Because the Stowe Gazette is a small business, they do not accept credit. Charles, therefore, had to pay cash for the advertisement. Journal entries to record sales are entered into the general journal weekly. On February 8, week one, sales were recorded. Week one sales were $5,500. Of this amount, \$2,000 was in cash, the remainder on credit. The cost of chocolate sold was $1,500. The inventory account is updated at the same time sales are recorded. On February 10, Charles paid \$500 to the Green Mountain Chocolate Factory for the chocolate received on February 1. Wages were paid on February 15 in the amount of $1,500. These wages covered the first fifteen days of February. Employees, in total, carn $100 per day. Sales for week two were recorded on February 15. Sales for week two totaled \$2,500. Of this amount, $1,300 was in cash, and the remainder was on credit. The cost of chocolate sold was $1,125. On February 16, Charles ordered additional supplies from the Stowe Supply Co. in the amount of $350. On February 19, the supplies were received. The supplies were purchased on credit, and the bill for the supplies is due in 60 days. On February 20, one of the display cases was damaged. The cost to repair the damage was $215. Charles paid for the repair with cash. On February 20 , the store received payment of $100 from a customer who purchased chocolate on credit during week 2 . On February 21 , a customer returned an unopened box of chocolate. Charles gave the customer a full refund of $50 in cash. The box of chocolate cost Charles $35. On February 22, a customer paid $100 in advance for a basket of gourmet chocolates to be prepared and delivered to the customer's home on March 14. On February 22, week 3, sales were recorded. Sales for week 3 totaled \$4,445. Of this amount, $2,250 was in cash, the remainder on credit. The cost of chocolate sold was $2,050. On February 25, Charles paid the Green Mountain Chocolate Factory $1,000, On February 29, the store received a heating bill for the month of February. The bill is $1,000, which is not surprising given the cold Vermont winters. The bill is due on March 10. You perform an inventory of the supplies on February 29. The inventory reveals \$275 worth of supplies left on hand at the end of the month. Wages for the last two weeks of February will be paid on March 5. On February 29, week four sales were recorded. Sales for week 4 totaled $5,000. $1,800 was in cash, the remainder on credit. The cost of chocolate sold was $2,750. Required: For the month of February: 1. Prepare journal entries for all transactions. Make sure to include the date and explanations. 2. Prepare T-accounts for all accounts and post the amounts from the journal entries to the T accounts. 3. Prepare a worksheet with the following columns: Trial Balance, Adjustments, Adjusted Trial Balance, Income Stament, and Balance Sheet. 4. Update the worksheet to reflect the unadjusted trial balance. 5. Prepare all necessary month-end adjusting entries. 6. Post the adjusting entries to the T-accounts. 7. Complete the worksheet. 8. Prepare an Income Statement, a Statement of Owners' Equity, and a Balance Sheet in good form. 9. Prepare closing entries. 10. Post-closing entries to the T-accounts. All work must be performed in Excel. Formal financial statements should be prepared with a wordprocessing program (MS Word). A completed assignment will include: - All journal entries have been recorded, including adjusting and closing entries. Make sure to include the date and explanations. - Completed T-ccounts. - Completed worksheet with the following columns: Trial Balance, Adjustments, Adjusted Trial Balance, Income Statement, and Balance Sheet. - The Income Statement, Statement of Owners' Equity, and Balance Sheet. Journal Entries \begin{tabular}{c|c} \hline Cash \\ \hline & \\ & \\ & \\ \hline 0 & \\ 0 & \\ \hline 0 & \\ \hline \end{tabular} \begin{tabular}{c|c} \hline Sales \\ \hline & \\ & \\ \hline 0 & \\ \hline 0 & \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline \multicolumn{2}{|c|}{ Copital linvestment: } \\ \hline & 30,000 \\ \hline & \\ \hline & 30,000 \\ \hline & \\ \hline \multicolumn{2}{|c|}{ Inventory } \\ \hline & \\ \hline & \\ \hline & \\ \hline 9 & 0 \\ \hline & \\ \hline \end{tabular} \begin{tabular}{r|r} Accounts Payable \\ \hline & \\ & \\ 0 & 0 \\ 0 & 0 \end{tabular} \begin{tabular}{ll} Suppties: & \\ \hline & \\ & \\ \hline 0 & 0 \\ \hline 0 & \end{tabular} 2/1/2023 Prepald Insurance \begin{tabular}{r|r|} \hline Notes Parable \\ \hline & \\ \hline 0 & 0 \\ \hline & 0 \\ \hline \end{tabular} Fixed Asset computer \begin{tabular}{r|r} \hline & \\ \hline & \\ \hline 0 & 0 \\ \hline & \\ \hline \end{tabular} Advertiung Cxpense 1,000 \begin{tabular}{|r|r|} \hline & \\ \hline & \\ \hline 0 & 0 \\ 0 & \\ \hline \end{tabular} Fixed Asset-Fintures Cost of Goods sold \begin{tabular}{r|} \hline Foxed Asset- Fintures \\ \hline \end{tabular} Journal Entries T-Accounts Trial Balance Adjusting Journal Entries Adjusted Tri Trial Balance A B C D E Adjusted Journal Entries 1 1-Feb Rent Expense Debit Credit Prepaid Rent $ 2,000.00 $ 2,000.00 A Revenue Sales Revenue Deduct: COGS Deduct: Return Total Expenses Advertising Expense Depreciation Expense Insurance Expense Utility Expense Rent Expense Repair Expense Salary Expense Supply Expense Total \$0 Net Income Net Income \begin{tabular}{l|l|l|} \multicolumn{1}{c}{ A } & B & C \\ \hline & Statement of Owner's Equity \\ \hline Beginning Balance & 0 \\ Add: Net Income & \\ \hline Investment & \\ \hline Less: Dividends & & \\ \hline Ending Balance & $0 \\ \hline \end{tabular} Balance Sheet \begin{tabular}{|c|c|c|c|c|} \hline Assets & & & \multicolumn{2}{|l|}{ Liabilities } \\ \hline Cash & & & Notes Payable & \\ \hline Accounts Receivable & & & Salary Payable & \\ \hline Prepaid Rent & & & Accounts Payable & \\ \hline Prepaid Insurance & & & Utilities Payable & \\ \hline Supplies & & & Unearned Revenue & \\ \hline Inventory & & 2 & & \\ \hline Fixed Asset-Computer & & & Total: & \$o \\ \hline Fixed Asset- Fixtures & & & & \\ \hline Accumulated Depreciation & & & Equity & \\ \hline & & & Capital Investment & \\ \hline Total: & $0 & & Owner's Equity & \\ \hline & & & & \\ \hline & & & Fotal: & \$o \\ \hline 7 & & & & \\ \hline 8 & & Total Liabilities & s+ Owner's Equity: & so \\ \hline 9 & & & & \\ \hline 0 & & & & \\ \hline \end{tabular} B C D E Closing Entries \begin{tabular}{|c|c|c|c|} \hline Feb-29 & Dr. Sales & & 17,445 \\ \hline & & Cr. Retained Earnings & 17,445 \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & 3 & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular}