Problem Section: Complete the accounting cycle for the period January 1 to February 28, 2018. We Do Taxes Company started operations as of January 1, 2018 and set up a small office in Edison to prepare tax returns and perform accounting services. Use the information to follow to journalize each transaction on the Journal Sheet Jan 1 Contributed the following assets for common stock. Cash, $15,000; accounts receivable, $1,000; Supplies, $2,000; and office equipment, $12,000. There were no liabilities contributed Jan 1 Paid six months rent on a lease rental contract, $5,400. Jan 3 Paid premiums on property and casualty insurance policies for the year, $1,800. Jan 5 Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $6,000. Jan 10 Received cash from clients on account $500. Jan 20 paid cash for advertising in a local newspaper, $350. Jan 21 Purchased a new computer and other office equipment on account from Staples, $3,500. Jan 21 Paid part-time receptionist for two weeks' salary, $1,000. Jan 29 Recorded services provided on account for the period Jan 1-28, $10,300. Jan 30 Received cash from clients for fees earned during period, Jan 1-20, $5,000. Jan 31 Paid Staples for part of the debt incurred on Jan 21, $1,500 Feb 3 Paid part-time receptionist for two weeks' salary, $1,000. Feb 4 Paid cash for supplies, $800. Feb 6 Received cash from clients on account $4,500. Feb 8 Paid for January month of telephone bill, $150. Feb 8 Pair for January month of utilities, $500. Feb 17 Paid part-time receptionist for two weeks' salary, $1,000. Feb 28 Recorded services provided on account for the period Feb 1-28, $8,500. Feb 28 Recorded cash from cash clients for fees earned for the period Feb 1-28, $4,500. Feb 28 Paid dividends, $8,000. Before preparing the financial statements, the following adiustments need to be made on Feb 28, 2018. Normally we do this for prepaid expenses, unearned revenue, accrued revenue, and accrued expense. In addition, we record depreciation for fixed assets other than land. a) Insurance expired during January and February is $300 ($1,800/12*2) b) Supplies on hand on February 28 are $1,280. c) Depreciation of office equipment for January and February is $517 ($12,000 $3,500/60 * 2 months) d) Accrued receptionist salary on Feb 28 is $1000, e) Rent expired during January and February is $1,800. f) Unearned fees on February 28 are $1,500. Prepare Adjusted Trial Balance. Prepare the Financial Statements. Journalize and Posting Closing Entries. Prepare Post-Closing Trial Balance. Page 1 Journal Post Ref. Debit Credit Description Date We Do Taxes Company Unadjusted Trial Balance February 28, 2018 Debit Balances Credit Balances Account Acct # Cash We Do Taxes Company Adjusted Trial Balance February 28, 2018 Debit Balances Credit Balances Account Acct # Cash mplete We Do Taxes Company Income Statement For the Month Ended February 28, 2018 Fees Earned Expenses: Salary Expense Rent Expense Supplies Expense Depreciation Expense Insurance Expense Telephone Expense Utilities Expense Advertising Expense Total Expenses Net Income(Loss) We Do Taxes Company Retained Eearnings Statement For the Month Ended February 28, 2018 Retained earnings January 1, 2018 Net Income(Loss) Dividends Change in retained earnings Retained earnings February 28, 2018 We Do Taxes Company Balance Sheet February 28, 2018 Assets Currents assets: Cash Accounts receivable Supplies Prepaid rent Prepaid insurance Total current assets Property, plant, and equipment Office equipment Accumulated depreciation Total proeprty, plant, and equipment Total Assets Liabilities Current liabilities Accounts payable Salaries payable Unearned fees Total Liabilities Stockholders' Equity Common Stock Reatined earnings Total Stockholders' equity total liabilities and stockholders' equity end Exam 1 Accounts for We Do Taxes Company Cash 11 Account Receivable 12 Supplies 14 Prepaid Rent 15 Prepaid Insurance 16 Office Equipment 18 Accumulated Depreciation 19 Accounts Payable 21 Salaries Payable 22 Unearned Fees 23 Retained Earnings 32 Dividends 33 Common Stock 3 Income Summary 34 Fees Earned 41 Salary Expense 51 Rent Expense 52 Supplies Expense 53 Depreciation Expense 54 Insurance Expense 55 Telephone Expense 56 Advertising Expense 58 Utilities Expense 57 Use totals to prepare unadjusted and adjusted trial balance, We Do Taxes Company Post-closing Trial Balance February 28, 2018 Debit Balances Credit Balances Account Acct # Cash end