help needed creating an unadjusted balance sheet
ELLA'S ELECTRONICS ACCOUNTING PROJECT PART 2 Adjusting Information At the end of February, the following information is determined: a. One month of the business insurance coverage has expired. b. At the end of February, $880 of the supplies have been used. c. Assistant is paid every two weeks on Friday. Since February 28th fell on a Thursday, the majority of her biweekly pay ($1,080) is unrecorded at February 28th. d. The equipment is expected to last 5 years and is expected to have no residual value. Depreciation should be recorded at the end of every month. e. Cinder had completed a repair job worth $3,000 at the end of February but hadn't had a chance to bill customer Adam Hamm for it yet. 1. Investment of cash and supplies into the business - Debit: Cash (101) - \$2,500 - Debit: Supplies (115) - $1,580 - Credit: Ella, Capital (301) - \$4,080 2. Opening a bank account for the business: - Debit: Cash (101) - Amount deposited - Credit: No specific account mentioned, assuming it's a transfer from personal funds to the business. 3. Purchase of a business insurance policy: - Debit: Prepaid insurance (110) - \$1,200 - Credit: Cash (101) - \$1,200 4. Taking out a small business loan: - Debit: Cash (101) $5,000 - Credit: Loan payable (250) - $5,000 5. Purchase of repair equipment for cash: - Debit: Equipment (140) - $2,100 - Credit: Cash (101) - \$2,100 6. January rent payment: - Debit: Rent expense (610) - \$875 - Credit: Cash (101) - \$875 7. Completion of repair for John Stewart: - Debit: Accounts receivable (104) - $10,900 - Credit: Repair fees earned (401) - $10,900 8. Payment to roommate for rent: - Debit: Rent expense (610) - \$375 - Credit: Cash (101) - \$375 9. Purchase of supplies from Circuit City: - Debit: Supplies (115) - \$380 - Credit: Cash (101) - $380 - Credit: Repair fees earned (401) - \$75 - Credit: Cash (101) - \$50 11. Salary payment to assistant: - Debit: Salaries expense (601) - \$1,200 - Credit: Cash (101) - \$1,200 12. Purchase of supplies on account from Technology. Warehouse: - Debit: Supplies (115) - $440 - Credit: Accounts payable (201) - $440 13. Completion of Sarah Church's repair and payment: - Debit: Accounts receivable (104) - \$75 - Credit: Repair fees earned (401) - \$75 14. Prepayment from Dr. Embert: - Debit: Unearned revenue (205) - $4,000 - Credit: Cash (101) - \$4,000 15. Receipt of payment from John Stewart: - Debit: Cash (101) - \$1,000 - Credit: Accounts receivable (104) - $1,000 16. Personal withdrawal of funds: - Debit: Ella, Drawing (302) - $5,000 - Credit: Cash (101) - \$5,000 17. February utility bill received: - Debit: Utilities expense (611) - \$95 - Credit: No specific account mentioned, assuming it's a liability until paid. Explanation: . Here is a breakdown of the transactions and how they should be recorded ELLA'S ELECTRONICS ACCOUNTING PROJECT PART 2 Adjusting Information At the end of February, the following information is determined: a. One month of the business insurance coverage has expired. b. At the end of February, $880 of the supplies have been used. c. Assistant is paid every two weeks on Friday. Since February 28th fell on a Thursday, the majority of her biweekly pay ($1,080) is unrecorded at February 28th. d. The equipment is expected to last 5 years and is expected to have no residual value. Depreciation should be recorded at the end of every month. e. Cinder had completed a repair job worth $3,000 at the end of February but hadn't had a chance to bill customer Adam Hamm for it yet. 1. Investment of cash and supplies into the business - Debit: Cash (101) - \$2,500 - Debit: Supplies (115) - $1,580 - Credit: Ella, Capital (301) - \$4,080 2. Opening a bank account for the business: - Debit: Cash (101) - Amount deposited - Credit: No specific account mentioned, assuming it's a transfer from personal funds to the business. 3. Purchase of a business insurance policy: - Debit: Prepaid insurance (110) - \$1,200 - Credit: Cash (101) - \$1,200 4. Taking out a small business loan: - Debit: Cash (101) $5,000 - Credit: Loan payable (250) - $5,000 5. Purchase of repair equipment for cash: - Debit: Equipment (140) - $2,100 - Credit: Cash (101) - \$2,100 6. January rent payment: - Debit: Rent expense (610) - \$875 - Credit: Cash (101) - \$875 7. Completion of repair for John Stewart: - Debit: Accounts receivable (104) - $10,900 - Credit: Repair fees earned (401) - $10,900 8. Payment to roommate for rent: - Debit: Rent expense (610) - \$375 - Credit: Cash (101) - \$375 9. Purchase of supplies from Circuit City: - Debit: Supplies (115) - \$380 - Credit: Cash (101) - $380 - Credit: Repair fees earned (401) - \$75 - Credit: Cash (101) - \$50 11. Salary payment to assistant: - Debit: Salaries expense (601) - \$1,200 - Credit: Cash (101) - \$1,200 12. Purchase of supplies on account from Technology. Warehouse: - Debit: Supplies (115) - $440 - Credit: Accounts payable (201) - $440 13. Completion of Sarah Church's repair and payment: - Debit: Accounts receivable (104) - \$75 - Credit: Repair fees earned (401) - \$75 14. Prepayment from Dr. Embert: - Debit: Unearned revenue (205) - $4,000 - Credit: Cash (101) - \$4,000 15. Receipt of payment from John Stewart: - Debit: Cash (101) - \$1,000 - Credit: Accounts receivable (104) - $1,000 16. Personal withdrawal of funds: - Debit: Ella, Drawing (302) - $5,000 - Credit: Cash (101) - \$5,000 17. February utility bill received: - Debit: Utilities expense (611) - \$95 - Credit: No specific account mentioned, assuming it's a liability until paid. Explanation: . Here is a breakdown of the transactions and how they should be recorded
