Instructions for February: Analyze February's transactions on the transaction document. 1. 2. Journalize February's transactions in the general journal. Post February's journal entries to the general ledger. 3. Prepare a trial balance. 4. Journalize adjusting entries for February in the general journal. 5. 6. Post February's adjusting entries to the general ledger. 7. Prepare an adjusted trial balance. S. Prepare the financial statements in the proper order Income Statement, Retained Earnings Statement, Balance Sheet) Journalize the closing entries for February in the general journal. 9. 10. Post February's closing entries in the general ledger. 11. Prepare a post closing trial balance for February. Graphic Design, Inc. Anna Chase graduated with a degree in graphic design in May 2013. During the period May through December 2013, Anna was self-employed-sole proprietorship. At the end of 2013 Anna applied to the state to become a corporation. The Charter was approved with a start date of January 1,2014. We will be working the first month of the corporation's business together in class as we discuss Chapters 2 and 3. It is very important you have all your papers with you at every class and stay caught up at all times. The month of January will be due according to the Course Calendar. If you choose to do February for extra credit, please do not start February until I have graded January and returned to you. Make necessary corrections and then go on to February. You will do February on your own. I will give you check figures and you can always bring to class and ask questions. Please bring out these instructions, January transactions, January Adjusting Information, February transactions, and February Adjusting Information. This is one document. The blank forms are in an excel spreadsheet. Save the spreadsheet on your desktop or a jump drive. Do all your work in the spreadsheet. When you turn in the project (both times) please put it together in this order: General Journal (numerical page order), General Ledger Accounts (numerical account order), Trial Balance, Adjusted Trial Balance, Financial Statements (in the proper order), and Post Closing Trial Balance. Do not include the instructions or transaction pages. Instructions for January: 1. Analyze January's transactions on the transaction document. Set up your general ledger accounts using the Chart of Accounts. Each account in the chart of accounts must have its own ledger account. This has been done for you. 2. 3. Journalize January's transactions in the general journal starting with page l. 4. Post January's journal entries to the general ledger 5. Prepare a trial balance. 6. Journalize adjusting entries for January in the general journal. Page 1 Graphic Design, Inc. January Transactions January 2, 2014 Anna Chase invested $20,000 in her newly formed corporation in exchange for 20,000 shares of SI par value common stock January 3, 2014 Office space was rented and paid for in advance for January and February, $1,600 January 3,2014 Graphic equipment was purchased with cash, S 3,600 January 6, 2014 Office equipment costing $5,000 was purchased from Morgan Equipment. Anna paid half now as the down payment and Morgan Equipment agreed to the balance being paid irn February. January 7, 2014 Graphie supplies costing $2,400 and office supplies costing S1,200 were purchased from Taylor Supply Company on eredit. January 10, 2014 A 12 month liability insurance policy was purchased covering the period January 1, 2014 through December 31, 2014, $1,800 January 13, 2014 Anna accepted an advance payment from Sam Jones for graphic design work to be done during the months of January 2014 and February 2014, $12,750 January 13, 2014 Paid Taylor Supply Company in full for the graphic and office supplies purchased last week January 14, 2014 Anna completed some graphic design work for an automobile dealer by placing advertisements in the local newspaper and was paid S3,600 January 20, 2014 Anna paid her receptionist $1,000 in wages for the period January 6 thru January 17, 2014 (two weeks). The workweek is Monday thru Friday (10 workdays). January 21, 2014 Anna accepted an advance payment of $4,000 to do some graphic design work for Miller's Advertising. January 24, 2014 Anna completed the work requested by Ward Department Stores. She sent a bill to the client for $3,800 Anna received and paid the utility bill for January, S160 January 27,2014 Anna received January's telephone bill but will wait until February to pay it, $135 January 28, 2014 January 31, 2014 Anna's corporation declared dividends, 10 a share, to be paid in February ADJUSTING ENTRY INFORMATION FOR JANUARY 1. One month's prepaid rent has expired 2 One month's prepaid insurance has expired 3. An inventory of graphie supplies reveals S600 still on hand on January 31 4. An inventory of office supplies reveals $400 used during January 5. Depreciation on graphic equipment for January is $100 and depreciation on the office equipment for January is S1S0 6. Graphic design work for Miller's Advertising,. totaling $1,600, was completed on January 31. Anna received payment in advance. 7. Anna completed half the work for Sam Jones by the end of January. Anna received payment in advance. 8. Anna owes her receptionist $1,000 in wages for the period January 20 thru January 31 (10 workdays). Anna will pay her receptionist on February 3, 2014. Graphic Design, Inc. February Transactions February 3, 2014 Received an additional investment of cash from Anna, 55,000, in exchange for 5000 shares of S1.00 par value common stock February 3, 2014 Paid the receptionist for the last two weeks of January. Review January 31 adjusting journal entry February 4, 2014 Purchased additional office equipment with cash, $1,560. February 6, 2014 Received graphic equipment transferred to the business from Anna, $2,800. Anna was given 2800 shares of SL00 par value common stock. February 7, 2014 Purchased additional office supplies with cash, S1,800 February 10, 2014 Dividend previously declared to Anna, the sole shareholder, was paid February 10, 2014 Paid amount due for January's telephone bill received in January. February 12, 2014 Purchased additional graphic supplies on credit from Taylor Supply Company, S1.250. February 15, 2014 Paid the total amount due to Morgan Equipment. Paid the receptionist for the first two weeks of February. February 17, 2014 Accepted an advance fee in cash for design work to be done for Williams' Art Company, $6,500. February 18, 2014 Purchased a copier (office equipment) from Thompson Equipment for $1,800, paid $500 in cash and agreed to pay the rest in equal payments over the next five months. February 21, 2014 February 21, 2014 Performed design work and received a cash fee, $2,860. Received full payment on account from Ward Department Stores for work performed last month February 24, 2014 Performed desiga work for Mathis Departmeat Stores and agreed to accept payment next month, $2,400 February 24, 2014 DTWINDdd/details February 25, 2014 Performed design work for a cash fee, $3,800 February 26, 2014 Paid the rent for March and April in advance, $1,600. February 27, 2014 Received and paid the utility bill for February, $265 February 28, 2014 Received the telephone bill for February, which will be paid next month, $195. February 28, 2014 The corporation declared a cash dividend of S.05 a share, to be paid in March. ADJUSTING ENTRY INFORMATION FOR FEBRUARY 1. One month's prepaid rent has expired. 2. One month's prepaid insurance has expired. An inventory of graphic supplies reveals $750 still on hand on February 28. 3. An inventory of office supplies reveals S1,200 used during February. 4. Depreciation on graphic equipment for February is $200 and depreciation on the office equipment for February is S250. 5. 6. Graphic design work for Williams' Art Company totaling $4,200 was completed on February 28. Payment was received in advance. 7. Anna completed the other half of the design work for Sam Jones. Two weeks of wages have accrued at February 28, 2014. Anna will pay the receptionist on March 3, 2014. 8