Instructions for February are located in the picture. And there is already January done with some information about the close accounts and Net Profit.

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. 2. 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. 3. Journalize January's transactions in the general journal starting with page 1 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 12. Prepare a post closing trial balance for January Instructions for February: 1. Analyze February's transactions on the transaction document. 2. Journalize February's transactions in the general journal. 3. Post February's journal entries to the general ledger. 4. Prepare a trial balance 5. Journalize adjusting entries for February in the general journal. Post February's adjusting entries to the general ledger. 6. 7. Prepare an adjusted trial balance. 8. Prepare the financial statements in the proper order Income Statement Retained Earnings Statement, Balance Sheet) 9. Journalize the closing entries for February in the general journal. 10. Post February's closing entries in the general ledger. 11. Prepare a post closing trial balance for February. Graphic Design, Inc. Chart of Accounts Account Name Account Number Cash Accounts Receivable 113 115 116 Graphic Supplies Office Supplies Prepaid Rent Prepaid Insurance Graphic Equipment Accumulated Depreciation, Graphic Equipment Office Equipment Accumulated Depreciation, Office Equipment Accounts Payable Unearned Graphic Fees Wages Payable Cash Dividends Payable Common Stock 118 144 145 146 147 211 212 213 214 311 312 313 314 411 511 Retained Earnings Cash Dividends Income Summary Graphic Fees Earned Wages Expense Utilities Expense Telephone Expense Rent Expense Insurance Expense Graphic Supplies Expense Office Supplies Expense Depreciation Expense 512 513 514 515 516 517 518 Graphic Design, Inc. February Transactions February 3,201 Received an additional investment of cash from Anna, S5,000, 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, S2,800. Anna was given 2800 shares of S1.00 par value common stock February 7,204 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, $1,250 February 15,2014 Paid the total amount due to Morgan Equipment. February 17,2014 Paid the receptionist for the first two weeks of February. February 18, 2014 Acceped an advance fee in cash for design work to be done for Williams' Art Company, S6,500. February 21, 2014 Purchased a copier (office equipment) from Thompsor Equipment for $1,800, paid S500 in cash and agreed to pay the rest in equal payments over the next five months. February 21, 2014 Performed design work and received a cash fee, $2,860. February 24, 2014 Received full payment on account from Ward Department Stores for work performed last month. February 24,2014 Performed design work for Mathis Department Stores and agreed to accept payment next month, $2,400 February 25, 2014 Performed design work for a cash fee, S3,800 February 26, 2014 Paid the rent for March and April in advance, S1,600. 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. 3. An inventory of graphic supplies reveals $750 still on hand on February 28. 4. An inventory of office supplies reveals S1,200 used during February. 5. Depreciation on graphic equipment for February is $200 and depreciation on the office equipment for February is S250. 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 8. Two weeks of wages have accrued at February 28, 2014. Anna will pay the receptionist on March 3, 2014. Post Closing TB Adjusted TB Debit Credit Debit Credit Debit Credit 48,78548,785 $0,035 $0,035 42,340 42,340 33,740 3,600 For Month Ended Jam 3 5,000 Telephone expense Insurance expense 5,695 Wages Payable ,6 Cash Dividends Payable 4,410 for Month Ended Jan 31 Retained Earnings, Balance on Jan Total Stockholders Equity Retained Earnings, Balance on Jan 1,680 Total Liabilities& Stockholders Equity