TMG, Inc. had a successful first month of operations. Below is the activity that has

taken place during the month of February. As the accountant, you need to record

the transactions and prepare the end of month financial statements for TMG, Inc.

42. TMG bought additional supplies for $2,000.

43. TMG spent $5,500 in advertising, $1,000 cash and the balance on account.

44. TMG upgraded its software storage with Cloud Technology for $1,500.

45. TMG paid its employees for the month in the amount of $6,700.

46. TMG wanted to buy more equipment from City Cycles, but was required to pay

off $4,500 outstanding credit beforehand. TMG made this payment and then

purchased another $3,000 of equipment on credit to satisfy their equipment needs.

47. TMG partnered with Natural Beauty to service clients at Luxury Suites for

$20,000 on credit. 50% of the proceeds are for TMG.

48. Another investor invested $10,000 in cash to TMG for a 10% share in equity.

49. Clients paid $575 against A/R balance from January.

50. TMG purchased urban wear (supplies) from Soul Appearance for $4,500, $1,500

cash and the balance on account.

51. The urban wear was for a client event held in Luxury Suites Ballroom that cost

$7,500, but was rented on account.

52. The event earned revenue of $25,000 although only $12,500 was collected; the

balance is still owed to TMG as of February 28, 2020

53. TMG paid cash dividends to the stockholder (owners) of $2,000.

Use T accounts to record ALL the above transactions; the T accounts must be labeled and footed.NOTE:"BB" is the beginning balance for the account.If you need more space for cash, use the back of the sheet.

Cash(60)Equipment (61)Common Stock (62)

Debit Credit Debit credit Debit Credit

Supplies Expense (63)Services Revenue(64)Wages Expense(65)

Debit Credit Debit Credit debit Credit

Accounts Payable (66) Accounts Receivable (67)Dividends (68)

Debit Credit Deb Cre Deb Cre

Advertising Expense (69)Office Expense (70)Rental Expense (71)

Deb Cre Deb Cre Deb Cre

TMG, INC

MONTH OF FEBRUARY

ADJUSTED TRIAL BALANCE 02/28/20

Unadjusted Trial Balance

Adjusting Entries

ADJUSTED Trial Balance

Acct #

Account Name

Debit

Credit

Debit

Credit

Debit

Credit

100

Cash

$17,475

101

Accounts Receivable

$1,175

102

Equipment

$5,500

200

Accounts Payable

$1,500

300

Common Stock

$22,000

301

Dividends

$250

302

Retained Earnings

400

Services Revenue

$3,800

501

Supplies Expense

$1,750

502

Wages Expense

$1,150

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TOTAL

$27,300

$27,300