February Transactions 1-Feb Paid six months of rent in advance, $5,400. 4-Feb Paid wages and salaries for $2,150, part of which was accrued in January. 7-Feb Purchased supplies on account, $920 11-Feb Performed car repair services on account, $3,670. 17-Feb Collected cash from credit sales made in January and February, $4,300. 20-Feb Made a monthly payment on the equipment note, $70. 23-Feb Performed car repair services and received cash at the time of sale, $5,850. 25-Feb Accrued for the bonus earned by the shop manager that will be paid in April, $1,150. February Adjusting Entries 28-Feb The estimated depreciation on building and equipment is $810. 28-Feb One month of rent has expired, $900. 28-Feb The annual interest rate is 5% on all notes and paid quarterly. Round to the nearest dollar. 28-Feb The supplies remaining at the end of the month was $700. 28-Feb Accrued wages and salaries worked in February that will be paid 3-5, $2,000. 28-Feb The estimated income taxes for the month is $855. March Transactions 1-Mar Performed car repair services and received cash at the time of sale, $5,000. 4-Mar Paid wages and salaries for $2,300, part of which was accrued in February. 10-Mar Issued stock to new investors, $14,000. 15-Mar Made the interest payment on all notes, all is accrued in interest payable. 15-Mar Paid annual income taxes that was accrued in income taxes payable. 20-Mar Made a monthly payment on the equipment note, $70. 22-Mar Paid cash for advertising, $255. 27-Mar Performed car repair services on account, $4,600. 30-Mar Paid dividends to owners, $400. March Adiusting Entries 31-Mar The estimated depreciation on building and equipment is $810. 31-Mar One month of rent has expired, $900. 31-Mar The annual interest rate is 5% on all notes and paid quarterly. Round to the nearest dollar 31-Mar Accrued wages and salaries worked in March that will be paid 4-4, $2,020. 31-Mar The estimated income taxes for the month is $765. Debit Credit $ $ 4,650 3,790 550 $ $ $ $ 76,000 123,500 5 6 Cash 7 Accounts receivable 8 Supplies 9 Prepaid rent 10 Building 11 Equipment 12 Accumulated depreciation 13 Accounts payable 14 Utilities payable 15 Salaries and wages payable 16 Interest payable 17 Income tax payable 18 Notes payable 19 Common stock 20 Retained earnings 21 Dividends 22 Service revenue 23 Salaries and wages expense 24 Depreciation expense 25 Rent expense 26 Interest exepense 27 Supplies expense 28 Income tax expense 29 Total $ 39,350 $ 5,465 $ $ 1,600 $ 133 $ 7,790 $ 33,550 $ 91,200 $ 26,415 $ 580 S S S $ S 8,810 2,450 810 900 133 300 650 214,313 $ 214,313 s $ 30 lete all steps for February first, then March Record February and March transactions in the General Journal and post to the General Ledger. Record adjusting entries for February and March in the General Journal and post to the General Ledger. Prepare the adjusted trial balance as of February 28 and March 31. Prepare the following February and March financial statements: o a) Income Statement for month ended February 28 and March 31 ob) Statement of Stockholders Equity for month ended February 28 and March 31 o c) Balance Sheet as of February 28 and March 31 o d) Statement of Cash Flows for month ended February 28 and March 31 Record February and March closing transactions in the General Journal and post to the General Ledger. Prepare a post-closing trial balance as of February 28 and March 31
