For the past several years, Dustin Larkin has operated a part-time consulting business from his home. As of February 1, 20X1, Dustin decided to move to rented quarters and to operate the business, which is to be known as Quixote Consulting, on a full-time basis. He has hired you to do his accounting since he needs to know about how well his business is doing, his ownership amount, and what the future of his business looks like. Quixote Consulting entered into the following transactions during February its first month (next page). 1 The following assets were received from Dustin Larkin: Cash, $35,000, Account Receivable $5,500, Supplies, $1,750, Office Equipment, $26,500, and a long term Note Payable (on the Office Equipment, $15,000. 1 Paid four months rent on a leased rental contract, $6,000. 1 Paid the premium on property and casulty insurance policies for the year, $2,400. 3 Received cash from clients as an advanced payment for services to be provided and recorded it as unearned fees, $3,000. 4 Purchased funiture and fixtures on account for the rental quarters from Century, Inc, $8,800. 5 Received cash from clients on account, $1,000. 9 Paid for a February newspaper advertisement, \$120. 9 Entered into a contract with Southside Food Vendors to place vending machines in the waiting room. Quixote Consulting is to receive 10% of all sales, with a minimum of $200 monthly. Quxiote Consulting received $200 as an advance payment. 10 Paid cash for supplies, $1,750. 11 Received cash from clients on account, $2,000. 13 Made a partial payment to Century, Inc. on account, $800. 15 Recorded services provided on account for the period Feb 1-15, $1,250. 16 Paid part-time receptionist for two weeks' salary, $1,750. 17 Recorded cash from cash clients for fees earned Feb 1-16, $4,175. 19 Purchased supplies on account, $2,500. 21 Recorded services provided on account for the period Feb 16-20, $1,100. 25 Recorded cash from cash clients for fees earned Feb 17-23, $1,850. 26 Wrote a business check to pay for Dustin's home phone bill, $130. 27 Received cash from clients on account, $1,600. 28 Recorded cash from cash clients for fees earned Feb 24-28, \$2,050. 28 Dustin withdrew cash for personal use, $6,000. 28 Southside Food Vendors reported a total of $3,000 of vending machine sales for Feb. Since the business had already received $200, Southside paid the remaining amount due for February. The following data was accumulated for month end adjustments: (a) Supplies on hand, $1,000. (b) Insurance expired, $200. (c) Salaries accrued, 2 weeks of the salaries. (d) Depreciation of Office Equipment, \$200, Furniture and Fixtures, \$250. (e) Bills for February received in March; Telephone, \$160; Electricity, \$250. (f) Rent expired this month, $1,500. (g) Unearned fees remaining at month end, $1,500. (h) Accrued consulting fees earned in February, $2,000
