Instructions 1. Enter February transactions in the general journal. 2. Post the transactions to the general ledger. 3. Prepare a trial balance. 4, Journalize and post adjusting entries. 5. Prepare an adjusted trial balance. 6. Prepare an A/P & A/R schedule to verify ending account balances. (The A/R schedule lists customers names and balances at the end of February. The total of the A/R schedule should equal the A/R balance on the trial balance. Similarly, the A/P schedule lists creditors and the amount owed to each at the end of February. The total of the A/P schedule should equal the balance of A/P on the trial balance.) 7. Prepare the financial statements. 8. Prepare the closing entries and tto the general dger. Transactions 2/1/1X Signed a 1 year lease for office space and paid Eebruary's rent of $1,700 by issuing check #101 to Kwant Co. Issued check #100 for $122 to MaillHouse for postage and handling on a mass marketing letter Sam sent out that afternoon 2/2/1X 2/2/1X Issued check W 102 to Spy Co. for $8,900 to purchase electronic surveillance equipment to observe clients' dates and better understand their dating problems. Performed a dating consultation for Dinah Toluvia and billed Dinah $5,000. 2/3/1X 2/3/1X Purchased 6 month's liability insurance issuing check #103 to Travelers Insurance for $1,200. Sam's Singles Service received $25,000 and issued shares of common stock to Amanda Friend. 2/4/1X 2/5/1X Received $3,500 total for services performed the previous month. ($500 from Jim Dudley, $2,000 from Paul Gooseman, and $1,000 from Tammy Talkmuch.) Hosted Ivy League Speed Dating Night where Ivy League graduates paid $60 each to go on a number of 5 minute "dates." 50 people attended the event and cash was collected from all but five of the participants, who agreed to mail in a check later that week. (The names of the five unpaid participants were: John Good, Brandon Broke, Wendy Jones, Ima Welch, and Skip Townsend.) 2/7/1X Received an invoice for $500 from SF News & Review for an advertisement that ran in last week's newspapers (invoice # 52A7J). 2/8/1X Samantha was approached by Cy Burnette, a successful young internet entrepreneur that can't seem to get a second date. Samantha agreed to observe one of Cy's dates and explain what he's doing wrong. 2/8/1X Paid outstanding invoices to Sun Company $350; Moon Company $500; and Stars Company $1,150 issuing checks # 104-106. (The expenses for these invoices were accrued last month.) 2/9/1X Received $120 ($60 from John Good and $60 from Wendy Jones) for the Ivy League Speed Dating night held 2/7, 2/10/1X 57 Purchased $800 of office supplies on account from Office Depot (invoice #62300. 2/1/1x 2/14/1X Sam's received invoice #97389 for $800 from Dewev, Cheatem & Howe Law Offices for legal advice provided Sam's Singles Sam's hosted Goth Date Night where participants paid $60 to attend a dinner party and meet other Gothic singles. 40 people attended and all paid at the door. (Sam's changed its credit policy to require cash at the door of special events.) 2/15/1X Sam's issued check # 107 for $1,630 to Sam & Ella's Catering Co. to pay for refreshments at the Ivy League Speed Dating Night and dinner at Gothic Night. 2/16/1X Sam's received a $15,000 advance from Percy Pratt for dating consultation services to be provided in February and March. 2/17/1X Samantha observed one of Cy Burnette's dates and met with him to discuss her observations. Cy wrote Sam's a check for $6,000 for the services. 2/18/1X 2/23/1X Samantha performed a dating consultation for Phil O. Pfangst and billed him $4,000. Sam's issued check #108 to pay Office Depot $800 (invoice # 62309 from 2/11) and check #109 to pay Dewey, Cheatem & Howe Law Offices $800 (Invoice # 97389 from 2/14). 2/24/1X Sam's issued dividends totaling $1,000 with checks #110-112 . 2/25/1X Received invoice #8783AC15 for $95 from AT&T for February's cell phone service. 2/27/1X Received invoice # 2535 1 from PG&E for February's power of $102.00. 2/28/1X Information for February's Adjusting Entries: Surveillance equipment purchased 2/2 has a 4-year life and a $500 expected salvage value. Sam's uses the straight line method of depreciation. On 2/28/1x, Sam's has supplies on hand of $150. As bookkeeper you earn $2,500, and Samantha earns $4,000 a month. Checks will be issued March 5 for February's work. (For simplicity, By the end of February, Samantha had performed 30 % of her dating consultations for Percy Pratt (Sam's received an advance from Percy on 2/17). By the end of February, one month's insurance had expired (see 2/3 transaction). assume there are no withholdings.) BANG & OLUFSEN pa on General Journal Date Page 2 Accoune Post Ref Debit Credin 60 General Jounal Page 3 Account Post Ref Debt Date Credit 61 General Ledger Account Cash Account No 110 Post Ref Balance Explanation Debit Debit Date Credt Credit a5400.00 1/5/1X 25100.00 100.00 a5.c0o.o 1/10/1x Account No. 115 Account Accounts Receivable Post Ref Balance Debit Date Explanation GoOsean, Paul Debit Credit Credit 2.000.00 1/10/1x 2,000.00 budley Jim pardon, PeagM 1/13/1x SH 3.500.00 5.500,00 1/25/1x 2.000.00 7.500.00 Talemuth, Tmmy 1/28/1x 1,000.00 8.500,00 63 BANG &OLUESEN pa dn Account Allowance for Doubtful Accounts. Account No 116 Post Ref Date Explanation Balancer Debit Credit Debit Credit Account Prepaid Insurance Account No. 120 Post Ref Date Explanation Balance Debit Credit Debit Credit Account Prepaid Advertising Account No 123 Post Date Balance Explanation Ref Debit Credit Debit Credit Account Office Supplies Account No 125 Post Balance Date Explanation Ref Debit Credit Debit Credit 1/10/1x GIt 100.00 100.00 1/31/1x 50.00 50.00 Account Merchandise Inventory Account No. 127 Post Balance Date Explanation Ref Debit Credit Credit Debit Account No- 410 Account Event Revenuer Post Ref Balance Debit Credit Debit Explanation Credit Date Account No 411 Account Consulting Revenue Balance Post Debit Credt Debit Credt Date Explanatio Ref 1/10/1X 2000.c0 2.000.00 5.500.00 3.500.00 1/13/1x 7.500.00- 2000.00 1/25/AX 500.00 /28/1x 1000.00 1/31/1x Clesing Gt t.500.c0 Account No 415 Account Interest Revenue Balance Post Credit Debit Explanation Ref Debit Credit Date Account No. Account Advertising Expense 510 Balance Post Credit Debit Credit Explanation Ref Debit Date eso00 G50,00 1/11/1x 0.c0 Closing 650.00 1/31/1x 512 Account No Account Catering Expense Balance Post Ref Credit Debit Explanation Credit Date Debit 67 RANG & OLUFSEN Account Nn Account Depreolation Expense Surv. Equip- 520 Post Ref Balance Debit Credt Date Explanations Debit Credt Account No. Account insurance Expense 525 Post Balance Debit Credit Date Explanation Ref Debit Credit Account Interest Expense Account No. 530 Post Balance Dater Explanation Ref Credit Crede Debit Debit Account Legal Expenser Account No. 535 Post Ref Balance Date Explanation Debit Credit Debit Credit Account Medical Insurance Expense Account No 537 Post Ref Balance Date Explanation Debit Credit Debit Credit Account Miscellaneous Expense Account No. 540 Post Balance Date Explanation Ref Debit Credit Debit Credit Account Office Supplies Expense Account No 545 Post Date Balance Explanation Ref Debit Credit Debit Credit 1/31/1x 50.00 50.00 1/31/1x Closina 50.00 0.00 68 550 Account No. Account Postage Expense Balance Post Credt Credit Debit Debit Ref Explanation Date 200.00 200.0 1/20/1x 0.o0 200.00 closine 1/34 Account No- 555 Account Printing Expense Balance Post Credit Debit Credit Debit Ref Explanation Date 1.150 00 1.150.0 1/14/1X o.0 1.150.00 clesing 1/31/1X0 560 Account No. Account Rent Expenser Balance Post Ref Debit Credt Credit Debit Explanation Date 575 Account No Account Telephone Expense Balance Post Credit Debit Credit Ref Debit Explanation Date 585 Account No. Account Utlities Expenser Balance Post Ref Credit Credit Debit Debit Explanation Date 590 Account No. Account Wage & Salary Expense Balance Post Ref Debit Credit Credit Debit Explanation Date Account No. Account Balance Post Ref Debit Credit Credit Debit Explanation Date 69