The ledger of Casper Consulting at January 31, 20X5 includes the following selected accounts:

Debit Credit

Prepaid insurance $ 3,600

Supplies 1,800

Building 100,000

Land 60,000

Notes payable $90,000

Unearned service revenue 8,000

Caspers accountant is inexperienced, and he would like your help in preparing the companys January 31, 20X5 financial statements. He has provided you with the following information:

1. A one-year insurance policy costing $3,600 was purchased on January 1, 20X5. At that time the full amount was debited to prepaid insurance.

2. A physical inventory count on January 31, 20X5 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 February 1, 20X5.

4. Unearned service revenue related to a client retainer paid on January 15, 20X5. On January 31, 20X5, 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 29^th and was unrecorded on January 31, 20X5. $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 20X5.

Required:

Part A: (15 Marks) Prepare the adjusting journal entries required at the month end January 31, 20X5.

Part B: (3 Marks) Record the subsequent cash transactions in February 20x5.