CP3-3 (Algo) Analyzing the Effects of Transactions Using T-Accounts, Preparing an Unadjusted Trial Balance, and Determining Net Income and Net Profit Margin [LO 3-1, LO 3-2, LO 3-3, LO 3-4, LO 3-5] Barbara Jones opened Barb's Book Business on February 1. You have been hired to maintain the company's financial records. The following transactions occurred in February, the first month of operations. a. Received shareholders' cash contributions on February 1 totaling $24,000 to form the corporation; issued 1,000 shares of common stock. b. Paid $3,180 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 $315 cash. d. Signed a promissory note on February 4, payable in two years; deposited $17,200 in the company's bank account. e. On February 5, paid cash to buy equipment for $5,350 and land for $11,850. f. Placed an advertisement in the local paper on February 6 for $675 cash. g. Recorded sales on February 7 totaling $2,550; $1,820 was in cash and the rest on accounts receivable. h. Collected accounts receivable of $90 from customers on February 8. i. On February 9, repaired one of the computers for $132 cash. TIP: Most repairs involve costs that do not provide additional future economic benefits. j. Incurred and paid employee wages on February 28 of $475. Debit Beginning Balance Ending Balance Cash Credit Accounts Receivable Debit Credit Beginning Balance Ending Balance Supplies Prepaid Rent Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance 0 Ending Balance Land Equipment Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Notes Payable (long-term) Common Stock Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance 0 Ending Balance Sales Revenue Advertising Expense Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance 0 Ending Balance Salaries and Wages Expense Repairs & Maintenance Expense Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance 0 Ending Balance