Jones Surf Shop has now hired you to be their accountant for all company operations.

As you take your new role you

yourself with the types of transactions and reports that Jones Surf Shop is going to need in the course of their business

The following are all transactions that occurred during your first week of work. Journalize each of the following trans
follow proper journal writing rules

A. On February 3, 2023, Office furniture is purchased. The furniture cost $2,500 and the payment will be due fort
B. On February 4, 2023, An advertisement was run in the newspaper at a total cost of $250. Cash was paid when
C. On February 4, 2023, Jeremy performed a private surf class for a client. The client was billed $535.
D. On February 6, 2023, Office supplies worth $250 are purchased with cash
E. On February 7, 2023, A new rental contract for the shop is signed and six month of rent at $500 a month is pre
F. On February 7, 2023, A utility bill for $150 is paid with cash
G. On February 7, 2023, Jeremy brought in another investor for the shop. This investor contributed $15,000 in ca

A. JOURNAL
Date Description Debit
February 3, 2023 Office Furniture $ 2,500
Accounts Payable
Purchased Office Furniture

B. JOURNAL
Date Description Debit
February 4, 2023 Advertising Expense $ 250
Cash
Newspaper Advertisement

C. JOURNAL
Date Description Debit
February 4, 2023 Accounts Receivable $ 535
Service Revenue
Private Surf Class service

D. JOURNAL
Date Description Debit
February 6, 2023 Office Supplies $ 250
Cash
Purchase Office Supplies

E. JOURNAL
 Date Description Debit
February 7, 2023 Prepaid Rent $ 500
Cash
Rent Prepayment

F. JOURNAL
Date Description Debit
February 7, 2023 Utilities Expense $ 150
Cash
Payment of Utility Bill

G. JOURNAL
Date Description Debit
February 7, 2023 Cash $ 15,000
Common Stock
New Investor Investment

As you finish out the month you are preparing to close our your first month with Jones Surf Shop. You take a look at
balance and prepare to make adjusting entries.

Jones Surf Shop

Unadjusted Trial Balance
February 28, 2023
Account Debit Credit
Cash $ 51,100
Accounts Receivable $ 1,890
Office Furniture $ 2,500
Supplies $ 250
Prepaid Rent $ 3,000
Accounts Payable $ 3,250
Interest Payable $ -
Salaries Payable $ -
Common Stock $ 50,000
Service Revenue $ 8,790
Advertising Expense $ 250
Interest Expense $ -
Rent Expense $ -
Utilities Expense $ 550
Salaries Expense $ 2,500
Supplies Expense $ -
Total $ 62,040 $ 62,040

You will need to make the following adjusting entries to complete the accounting period
A. On February 28, 2023, you took an inventory of supplies and discovered that $100 of supplies had been used d
B. On February 28, 2023, you need to recognize February rent expense from Prepaid Rent
C. On February 28, 2023, there was an expense for interest on the loan Jeremy took out of $150 - this won't be p
D. On February 28, 2023, a review of the timeclock system found salaries of $750 were earned by employees, bu

Jounalize each of these adjusting entries

A. JOURNAL
Date Description Debit
February 28, 2023 Supplies Expense $ 100
Supplies Expense
Supplies Inventory

B. JOURNAL
Date Description Debit
February 28, 2023 Rent Expense $ 3,000
Prepaid Rent
February rent expense

C. JOURNAL
Date Description Debit
February 28, 2023 Interest Expense $ 150
Interest Payable
Loan Interest

D, JOURNAL
Date Description Debit
February 28, 2023 Salaries Expense $ 750
Salaries Payable
Salaries Earned

The adjusted trial balance after your adjusting entries is completed below.

Jones Surf Shop

Adjusted Trial Balance
February 28, 2023
Account Debit Credit
Cash $ 51,100
Accounts Receivable $ 1,890
Office Furniture $ 2,500
Supplies $ 150
 Prepaid Rent $ 2,500
Accounts Payable $ 3,250
Interest Payable $ 150
Salaries Payable $ 750
Common Stock $ 50,000
Service Revenue $ 8,790
Advertising Expense $ 250
Interest Expense $ 150
Rent Expense $ 500
Utilities Expense $ 550
Salaries Expense $ 3,250
Supplies Expense $ 100
Total $ 62,940 $ 62,940

Based on the Adjusted Trial Balance prepare the required Financial Statements

Jones Surf Shop

Income Statement
For Month Ended February 28, 2023
Revenue
Service Revenue $8,790
Total Revenue $8,790
Expenses
Advertising Expense $250
Interest Expense $150
Rent Expense $500
Utilities Expense $550
Salaries Expense $3,250
Supplies Expense $100
Total Expenses $4,800

Net Income $3,990

Jones Surf Shop

Statement of Retained Earnings
For Month Ended February 28, 2023
Beginning Retained Earnings (Feb 1) $ -
Net Income $ 3,990

- Dividends $ -
 Ending Retained Earnings (Feb 28) $ 3,990

Jones Surf Shop

Balance Sheet
As of End of Month 1, Year 1
Assets
Cash $51,100
Accounts Receivable $1,890
Office Furniture $2,500
Supplies $150
Prepaid Rent $2,500

Total Assets $58,140

Liabilities
Accounts Payable $3,250
Interest Payable $150
Salaries Payable $750
Total Liabilities $4,150

Stockholder's Equity
Common Stock $50,000
Ending Retained Earnings $3,990
Total Stockholder's Equity $53,990

Total Liabilities & Stockholder's Equity $58,140

Jeremy is really impressed with the work you did in putting the month end reports. He asks if its matters the order in
statements are prepared. Is there a purpose to the order or could they prepared in any order?

Yes, the order is very important. As the example was going on it was pretty visible that to advance on the different fi
we needed some important information of the past statements. As well, it is essential an order on financial stateme
leads to the financial position of each specific point presented. As well, while the calculations are going through a pa
consistency and if both sides of the equation are equal and understanble.
tions. As you take your new role you are going to familiarize
to need in the course of their business.

Journalize each of the following transactions. Be sure to

500 and the payment will be due forty-five days after delivery
tal cost of $250. Cash was paid when the order was placed.
he client was billed $535.

month of rent at $500 a month is prepaid

is investor contributed $15,000 in cash in exchange for common stock.

Credit

$ 2,500

Credit

$ 250

Credit

$ 535

Credit

$ 250
 Credit

$ 500

Credit

$ 150

Credit

$ 15,000

Jones Surf Shop. You take a look at the unadjusted trial

 hat $100 of supplies had been used during the month
m Prepaid Rent
my took out of $150 - this won't be paid until maturity of the loan
$750 were earned by employees, but not yet paid

Credit

$ 100

Credit

$ 3,000

Credit

$ 150

Credit

$ 750
orts. He asks if its matters the order in which financial
d in any order?

ble that to advance on the different finanacial statements

sential an order on financial statements because each steps
he calculations are going through a path you can see the