Part B- Record the Subsequent Cash Transaction in Febuary

Question 7: 18 marks - 35 minutes The ledger of Casper Consulting at January 31, 20X5 includes the following selected accounts: Casper's accountant is inexperienced, and he would like your help in preparing the company's January 31,205 financial statements. He has provided you with the following information: 1. A one-year insurance policy costing $3,600 was purchased on January 1,205. At that time the full amount was debited to prepaid insurance. 2. A physical inventory count on January 31,205 revealed $800 in supplies were still remaining. 3. Land and building were purchased on January 1, 20X5 at a cost of $160,000. The building has an expected useful life of 20 years. The purchase was financed by paying $70,000 in cash and the balance on a 2 -year, 8% note payable. Interest for the month of January was $600 and was paid on Februy 1, 205. 4. Unearned service revenue related to a client retainer paid on January 15,205. On January 31,205, half of this amount has been earned. 5. Fees earned but unbilled for the month of January amounted to $5,000 6. A bill from Bell Telephone was received on January 29th and was unrecorded on January 31,205. $750 of the bill related to January telephone charges. Payment of the telephone bill was made on February 22, 20X5. The payment in the amount of $875 paid for last months telephone bill and internet charges for February 205. Required: Part A: (15 Marks) Prepare the adjusting journal entries required at the month end January 31,205. Part B: (3 Marks) Record the subsequent cash transactions in February 205