Please help with cycle 2, I need to create Journal Entries. Cycle one is included in case you need some of that information.

Create journal entries for each transaction:

Cycle 1:

1 1/1/2022 Sells $15,000 of Common Stock to shareholders for cash Db Cash Cr Common Stock 2 1/1/2022 Signs a 4-month lease. Rent is $500 due the first week of each month and pays the rent for the month of January Db pre-paid rent Cr Cash 3 1/1/2022 Takes out a 5-year, $5,000 loan from MT Bank with 6% interest due monthly Db Cash Cr Notes Payable 4 1/1/2022 Purchases supplies worth $250 for cash Db Supplies Cr Cash 5 1/1/2022 Purchases equipment worth $3,000 for cash with 4-month useful life Db equipment Cr Cash 6 1/2/2022 Purchases 100 units of inventory, on account, for $5,000 ($50 per unit) Db Inventory Cr Accounts Payable 7 1/4/2022 Provides services for $1,500 Db Cash Credit Service Revenue 8 1/6/2022 Sells $10,000 of Common Stock to shareholders for cash Db Cash Cr Common Stock 9 1/9/2022 Purchases 100 units of inventory, on account, for $5,000 ($50 per unit) Db Inventory Cr Accounts Payable 10 1/10/2022 Provides services for $3,000 Db Cash Cr Service Revenue Accounting Cycle Project Transactions (1-31) 1/31/2022 Company pays its supplier for inventory purchased on 1/2/2022 Db Accounts Payable Cr Cash

Key for accounts to Debit and Credit for Part #1 Accounting Cycle Your T account postings must = the Financial Statement Key Balances for Part #1 to earn any points back. 1/31/2022 Company provides services worth $5,000 and is paid in cash Db Cash Cr Service Revenue 1/31/2022 Company employees earn $20,000 salaries in the month of January to be paid in February (CORRECTED) Db Salaries Expense Cr Salaries Payable 1/31/2022 Company purchases a building using a note payable for $480,000 at 5.00% annual interest and Orca Company puts $15,000 down Db building ($Cash + $ Notes Payable) Cr Cash Cr Notes Payable *remember debits must equal credits every journal entry every time. Accounting Cycle Project January Month-end Adjusting Entries Transactions (1/31) (see adjusting Entry Power Point) 1/31/2022 Supplies had a zero balance at the end of January Beginning Supplies (0) + purchased supplies - ending supplies (0) =supplies used up Dr Supplies Expense Cr Supplies 1/31/2022 Recorded rent expense for the month of January that was paid for on January 1 Db Rent Expense Cr Pre-paid Rent 1/31/2022 Adjust for Interest Accrued on 5-year, $5,000 loan from MT Bank with 6% interest due monthly made on January 1st Db Interest Expense Cr Interest Payable Face x rate x time 5,000 x .06 x 1/12 Accounting Cycle Project Transactions (2-2) 2/2/2022 Schedules a service to be performed later, but receives the $3,000 on /2/2022 Db Cash Cr Deferred Revenue 2/2/2022 Pays the supplier for inventory purchased on 1/9 Db Accounts Payable Cr Cash

Key for accounts to Debit and Credit for Part #1 Accounting Cycle Your T account postings must = the Financial Statement Key Balances for Part #1 to earn any points back. 2/2/2022 Pays Employee Salaries of $20,000 for month of January Db Salaries Payable Cr Cash 2/2/2022 Pays for its January utilities which cost $1,750 Db Utility Expense Cr Cash 2/2/2022 Pays rent for February Db Pre-Paid Rent Cr Cash Accounting Cycle Project Transactions (2-4) 2/4/2022 Provides services to a customer worth $16,000. The customer pays for half of the service now and the rest is on account Db Cash Db Accounts Receivable Cr Service Revenue Remember debits must = Credits for all Journal Entries 2/4/2022 Purchases liability insurance for its business starting in February at $12,000 for the year. Note all $12,000 is paid immediately Db Pre-Paid Insurance Cr Cash 2/4/2022 Purchases $2,000 of supplies, on account. Db Supplies Cr Accounts Payable 2/4/2022 Purchases a $30,000 equity stake (investment) in a start-up company Db Investment Cr Cash Accounting Cycle Project Transactions (2/7) 2/7/2022 Sells Common Stock for $50,000 Db Cash Cre Common Stock 2/7/2022 Provides Services to Customers worth $10,000 and is paid in cash Cr Cash Cr Service Revenue 2/7/2022 Purchases new advertisements for $4,400 Db Advertisement Expense Cr Cash

Key for accounts to Debit and Credit for Part #1 Accounting Cycle Your T account postings must = the Financial Statement Key Balances for Part #1 to earn any points back. 2/7/2022 Pays for supplies purchased on 2/4 Db Accounts Payable Cr Cash 2/7/2022 Provides the services to customers scheduled on 2/2 2/7/2022 A customer approaches Orca Company and requests a service worth $6,000. The customer pays Orca Company $2,000 now and will pay the other $4,000 once the service is provided. Dr Cash Cr Deferred Revenue (only for cash received

Cycle 2:

February 23rd

2/23/2022	Orca Company record a $250 service fee charged by the bank and deducted from company's bank account
2/23/2022	Orca Company provides services to a customer for $16,000, to be paid on account
2/23/2022	Orca Company pays a $10,000 dividend to its shareholders
2/23/2022	Orca Company collects the $8,000) accounts receivable from the customer serviced on 2/4 (note, this adjusts an entry from submission #1)

February 25th

2/25/2022	Orca Company provides the $6,000 of scheduled services to the customer from 2/7 and collects the remainder of the cash owed ($4,000).
2/25/2022	Orca Company provides services to a customer worth $12,000, to be paid on account
2/25/2022	On 2/25 Orca Company purchases 200 units of additional inventory from its supplier at $50 per unit ($10,000 total), paying using a check (cash equivalent)

February 28th

2/28/2022	Orca Company sells 200 units of inventory for $80 per unit and is paid in cash. Recall that the cost of Inventory is $50 per unit.
2/28/2022	Orca Company receives a $500 dividend (revenue) for the investment it made on February 4th.
2/28/2022	Orca Company records salaries earned in February to be paid to employees in March of $25,000
2/28/2022	Orca Company records a February utilities bill for $2,000 for utilities consumed in February to be paid next month
2/28/2022	Orca Company performs its adjusting entries for February Here are the entries you need to record: -Accrue Interest for BOTH note payables (1/1 $5,000 note and 1/31 $380,000 notes) for the month of February -Record using up one month of 2/4 Prepaid Insurance ($12,000/12 months =$1,000 monthly insurance used up) -Record using up 2/4 Prepaid Rent for February ($500) - It has used up $1,250 of supplies of the $2,000 it had purchased on 2/4

March 2nd

3/2/2022	Orca Company sells 50 units of inventory for $80 per unit on account. The sale has terms of 2/10, n/30. Recall inventory was purchased for $50 per unit.
3/2/2022	It pays off the Utilities payable accrued on 2/28
3/2/2022	It pays off the salaries payable accrued on 2/28
3/2/2022	Orca Company per-pays its rent for March AND April. $500 each
3/2/2022	Orca Company records an allowance of 5% of current A/R including the transactions on March 2nd. (A/R current balance = $32,000)

March 4th

3/4/2022	Orca Company collects the receivable of $16,000 from services provided on February 23rd. No update is made to the allowance.
3/4/2022	Orca Company receives payment for the inventory sold on 3/2 ($4,000). Note this payment comes within 10 days of purchase with terms 2/10 net 30
3/4/2022	Orca Company purchases 100 units of inventory at $50 per unit using cash
3/4/2022	A customer returns 20 units of inventory purchased on 2/28. The inventory is not defective, so Orca Company adds it back to its inventory supply Sales $80 Cash CGS $50 per unit
3/4/2022	Orca Company sells 100 units of inventory at $80 per unit. The customer is able to pay for half now and Orca Company records the remainder due on account with terms 1/10, n/30.
3/4/2022	Orca Company is told its customer serviced on 2/25 has gone insolvent. This requires Orca Company to record a write-off for the accounts receivable from the customer ($12,000).
3/4/2022	Orca Company is paid $11,000 of the Accounts Receivable for the insolvent customer from 2/25. Orca Company must record a recovery related to this $11,000

March 21st, 23rd

3/21/2022	Orca Company purchased 500 units of inventory from its supplier, on account. The supplier offered Orca Company a price of $65 per unit. Orca Company adopted the FIFO Method of inventory.
3/21/2022	Orca Company negotiated a Promissory Note with the customer for the accounts receivable for purchased inventory on 3/4 ($4,000 balance). The note has terms of 6% interest owed in 6 months
3/23/2022	Orca Company sold 100 units of inventory on account. Due to recent demand, Orca Company raised its price to $100 per unit for the inventory. TO cost according to the FIFO method ($10,000+$5,000-$2,500 = $12,500/$50 = 250 units remaining in inventory priced at $50 before 500 unit of inventory purchased. So price the inventory sold $50 per unit cost x 100 units sold = $5,000