practice problem

a. Recelved shareholders' cash contributions on February 1 totaling $15,000 to form the corporation, issued 1,000 shares of common stock. b. Paid \$3,375 cash on Februacy 2 for three month' rent for office space. TIP. For convenience, simply record the full amount of the payment as an asset (Prepaid Rent). At the end of the month, this account will be adjusted to its proper balance. c. Purchased and received supplies on February 3 for $720 cash. d. Signed a promissory note on February 4, payable in two years, deposited $17,000 in the company's baok account. e. On February 5 , paid cash to buy equipment for $5,500 and land for $11,500. t. Placed an advertisement in the local paper on February 6 for $890 cash. 9 Reconded sales on February 7 totaling $4,400,$1,950 was in cash and the rest on accounts receivable. h. Collected accounts reelvable of $147 from customers on February 8 . 1 On February 9, repaired one of the computers for $153 cash. TIP: Most repairs involve costs that do not provide additional future economic benefits j. Incurred and paid employee wages on February 28 of $640 Required: 1. Prepare the journal entry for each of the above transactions. 2. Post the transaction activity from requirement 1 to the T-Accounts below. Al accounts begin with zero balances because this is the first month of operations. 3. Prepare an unadjusted trial balance at the end of February. 4-a. Refer to the revenues and expenses shown on the unadjusted trial balance Based on this information, caiculate pretiminary net income and net profit margin? 4b. Determine whether the net profit margin is better or worse than the 13 percent earned by a close campetitoc. Complete this question by entering your answers in the tabs below. Frepare an unadjusted trial balance at the end of February. Barbara Jones opened Barb's Book Business on February 1. You have been hired to maintain the company's financial records. The following transactions occurred in February, the first month of operations. a. Recelved shareholders' cash contributions on February 1 totaling $15,000 to form the corporation, issued 1,000 shares of common stock. b. Paid $3,375 cash on February 2 for three months' rent for office space. TIP: For convenience, simply record the full amount of the payment as an asset (Prepaid Rent) At the end of the month, this account will be adjusted to its proper balance. c. Purchased and recelved supplies on February 3 for $720 cash d. Signed a promissory note on February 4, payable in two years; deposited $17,000 in the company's bank account. e. On February 5 , paid cash to buy equipment for $5,500 and land for $11,500. f. Ploced an advertisement in the local paper on February 6 for $890 cash. g. Recorded sales on February 7 totaling $4,400;$1,950 was in cash and the rest on accounts recelvable h. Collected accounts receivable of $147 from customers on February 8 . LOn February 9, repaired one of the computers for $153 cash TIP: Most repairs involve costs that do not provide additional future economic benefits. 1. Incurred and paid employee wages on February 28 of $640. Required: 1. Prepare the journal entry for each of the above transactions 2. Post the transaction activity from requirement 1 to the T-Accounts below. All accounts begin with zero balances because this is the first month of operations. 3. Prepare an unadjusted trial balance at the end of February. 4-a. Pefer to the revenues and expenses shown on the unadjusted trial balance. Based on this information, calculate preliminary net income and net profit margin? 4b. Determine whether the net profit margin is better or worse than the 13 percent earned by a close competitor. C) Answer is not complete. Complete this question by entering your answi in the tabs below. Shefer to the revenues and expenses shown on the unadjusted trial balance. Based on this infoemation, calculate preliminary net inceme and net profit margin? (Mound your Net Profit Margin answer to 1 decimal place.)