PREPARE FOR FEBRUARY:

1.JOURNAL ENTRIES 2.JOURNAL LEDGERS

3.ADJUSTED TRAIL BALANCE

Adjusted Trial Balance January 31, 2XX1 Debit Credit Cash 4,490 Accounts Receivable 4,290 Supplies 680 $ Prepaid Rent S 79,000 $ 124,000 Building Equipment S38,270 $ 5,085 Accumlated Depreciation Accounts Payable $ $ 1,790 $ 6,545 Utilities Payable Wages and Salaries Payable Income Tax Payable $ Interest Payable 112 $ 33,650 95,000 S 28,725 Notes Payable Common Stock Retained Earnings $ Dividends 300 S 8,290 Service Revenue Wages and Salaries Expense 2,130 850 Rent Expense Supplies Expense 190 770 Depreciation Expense 112 Interest Expense Income Tax Expense 655 217,467 $217,467 Total Post-Closing Trial Balance January 31, 2XX1 Account $ Cash 4,490 $ Accounts Receivable 4,290 Supplies 680 Building 79,000 $124,000 Equipment Accumulated Depreciation $38,270 $5,085 Accounts Payable $1,790 Wages and Salaries Payable $6,545 Income Tax Payable $ Interest Payable 112 $ 33,650 $ 95,000 $32,008 $ 212,460 Notes Payable Common Stock Retained Earnings $ 212,460 Total February Transactions 1-Feb Paid six months of rent in advance, $5,100. 4-Feb Paid wages and salaries for $2,180, part of which was accrued in January 7-Feb Purchased supplies on account, $810 11-Feb Performed car repair services on account, $3,650. 17-Feb Collected cash from credit sales made in January and February, $4,560. 20-Feb Made a monthly payment on the equipment note, $65. 23-Feb Performed car repair services and received cash at the time of sale, $5,430. 25-Feb Accrued for the bonus earned by the shop manager that will be paid in April, $975 February Adjusting Entries 28-Feb The estimated depreciation on building and equipment is $770. 28-Feb One month of rent has expired, $850. 28-Feb The annual interest rate is 4% on all notes and paid quarterly. Round to the nearest dollar. 28-Feb The supplies remaining at the end of the month was $840 28-Feb Accrued wages and salaries worked in February that will be paid 3-4, $1,940. 28-Feb The estimated income taxes for the month is $505