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FOR THE GIVEN INFORMATION BELOW CREATE T-accounts, journal entry FOR FEB, USE THE OPENING BALANCE , DONT HAVE TO CREATE BALANCE FOR JAN

January:

2Cash injection of $90,000 from Jones in cash. $40,000 is to be treated as a shareholder loan. The balance as a capital investment. The cash was deposited in the company bank account. Jones also gave a computer equipment worth $2,000, but wanted nothing in return for it.

3Purchase of $570 of supplies for cash and $8,200 worth of furniture on account.

3Signed a 3-year lease with monthly rates of $1,110. Paid rent for January.

4Performed consulting services for Client 1 and received $2,500 in cash.

7Paid $33,000 cash to acquire land for a future office site.

11Consulted for Client #2 and sent an invoice to the client for $2,100.

12Bought a used company car for $5,000. Salvage value estimated at $2,000 & useful life is 3 years.

15Paid administrator a salary of $1975.

16 Paid for the furniture bought on account on January 3.

18Received partial payment of $600 from client #2.

19Provide major consulting to client #4, Invoiced for $11,350.

22Paid utility bills totalling $300.

29Received $2,700 payment for additional consulting provided to client #4.

31Paid administrator a salary of $1975.

31Jones withdrew $12,000 for personal use.

GIVEN ARE THE OPENING BALANCES FOR MONTH February

Cash24,650

Accounts Receivable11,950

Supplies (Asset)400

Computers2,000

Accumulated Amortization - Computer79

Vehicles5,000

Accumulated Amortization - Vehicles111

Furniture2,800

Accumulated Amortization - Furniture22

Land38,000

Accounts Payable750

J. Jones, Capital83,838

THESE ARE THE February transactions:

1Purchased additional $250 in supplies.

1Signed an insurance policy costing $3,600 over 3 years. Paid for February, March and April.

2Client #4 paid half of its bill.

5Bought supplies on account required for a client presentation. Supplies cost $250. Invoiced Client #5 a total of $1,400 for the presentation.

7Paid administrator a salary of $1,875.

16 Received balance owing from client #2.

19Received invoice for utility bills totalling $500.

28Administrator was not working out. Worked until end of February but, as yet, has not been paid.

28Jones estimates the same amount of supplies were used for each month. The remaining balance of supplies when counted on February 28 was $200.

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