Feb: 1. Jeremaid issued additional 10,000 shares, each with par value $1, for $5 per share

2. The company continued to receive insurance coverage for the month of February. This relates to point c. in in-class problem

3. Company purchased more equipment worth $100,000 on Feb 1^st by signing a short-term Notes Payable. Interest rate on the loan was 6% and the interest and the entire principal will be paid after one year. The depreciation on this equipment for the month of February was $1,500.

4. Interest on the loan taken on Jan 1^st will continue to accrue in February. Depreciation on the equipment purchased on Jan 1^st will continue to be recorded in February. These relates to Point b. in In-Class problem.

5. The company performs another 15% of the work in February for the contract it had signed on Jan 15^th. This relates to Point g. in the In-Class problem.

6. In February, the company purchased (in cash) and used up office supplies worth $4,000.

7. Company purchased Investments worth $10,000 on Feb 1^st. The company receives 12% interest on its Investments. The interest is received in December of each year.

8. On Feb 15^th, 2020, the company bought inventory worth $200,000 on credit from its suppliers.

9. On Feb 20^th, 2020, the company sold goods for $180,000. The sale was on account. The cost of these toys sold was $140,000.

10. Received cash from customers in February, $140,000.

11. Paid off Suppliers in February, $220,000

12. The companys franchisees owe Jeremaid $1,800 in royalties for sales the franchisees made in February.

13. Paid off Utilities Payable of $2,000. Utilities expenses for February were $4,000 and will be paid in March.

14. Paid off Wages Payable of $5,000. Wages accrued in the last week of February were $6,000 and will be paid in the first week of March.

15. The company declared cash dividends of $1,000 in February which will be paid sometime in March.

Jeremiad Inc. started operations on Jan 1^st, 2020. It is in the process of creating its first set of financial statements for the month ending January 31^st 2020. The following transactions took place in the month of January 2012.

a. Issued 50,000 equity shares (par value of $1 per share) for $4 on Jan 1^st.

b. Bought equipment worth $50,000 on Jan 1^st. The equipment was paid for by borrowing $30,000 at 5%; interest is payable on June of every year. The remaining was paid for with cash. Depreciation on the equipment was $1,000 for the month.

c. Paid insurance premium of $6,000 on Jan 1^st for one-year policy.

d. Bought investments worth $20,000

e. Made inventory purchases on account worth $40,000 on Jan 15^th

f. Hired and employed three employees starting Jan 24^th. Their total wages of $5,000 for the week ending Jan 31^st, will be paid on Feb 7^th

g. Received a payment of $24,000 on Jan 15^th for providing technical services to a client for a period of one year. By the end of the month, 10% of the services had been provided.

h. Sold goods worth $40,000 on Jan 25^th. Received cash for half the amount and the rest is on account. Cost of the goods sold was $30,000

i. Incurred utilities expenses of $2,000 during the month of January. A check for $2,000 will be dispatched in the first week of February.

Required:

Prepare the journal entries (both regular and adjusting), trial balance, Income Statement, Statement of Retained Earnings and Balance Sheet for the month of February 2020.

Also create a T-Account for Cash, Inventories, Unearned revenue, Equipment, Sales Revenues and Accumulated Depreciation.

Write the closing entries for the month of February 2020

Create a Post-Closing Trial Balance for February 2020.

Please note that the Post-Closing Trial Balance for January in the In-Class Problem shows the ending balances in each of the accounts for January. These will become the beginning balances for the month of February. Revenues and Expenses always have a beginning balance of zero for every period.