Question

Comprehensive Accounting Cycle Problem In January, Sammy Bearkat organized a corporation to provide tutoring services to students The company, called Stellar Student Tutoring began operations immediately. The business general ledger balances are shown below: Accounts I Cash Accounts Receivable Supplies Land Accounts Payable Common Stock Retained Earnings Totals Stellar Student Tutoring Post-Closing Trial Balance January 31, 2020 Debit $32,000 11,000 5,600 68,000 4,200 85,000 27.400 $116,600 $116,600 During February 2020, the following transactions occur: Feb 1" The corporation issued an additional 10,000 shares of capital stock to Harris Corporation in exchange for $15,000 cash Feb 1 Purchased a building from Sweeney Enterprise for $150,000. A cash payment of $25,000 was made at the time of the purchase, and a note payable was issued for the remaining balance. Feb 1 Paid $7,800 for fire insurance on building for next 3 years Feb 9th Purchased additional supplies on account for $3,500 Feb 11 Billed students 535,840 for tutoring services provided during the first half of February Feb 16 Paid $12,300 in salaries earned by employees during the first half of February. Feb 18th Received $10,500 cash in advance from students for tutoring services to be provided in the future Collected cash from accounts receivable of $40,000 Feb 22nd Feb 25 Paid $3,330 for utilities during period. Feb 25th Paid $6,250 cash on accounts payable. paid $650 ch Feb 28 Declared and paid a $2,000 dividend. Sammy Bearkat uses the following accounts to record transactions for Stellar Student Tutoring.

Answer 1

Journal Debil 15000 General Date Account titles feb-t Cash Common Stock Credit 1 5000 Feb! 150000 Building cash Accounts 21606 payable 125056 Febil Insurance expense prepaid Insurance 2600 5200 cash 7800 Febg Supply expense Accounts payable 3500 3500 Febill cash 35 480 Accounts Receivable 35uso Tutoring Service 70960 Revenue Scanned with CamScanner

aubou Loob Wage expense Cash Wage payable 12300 12 300 10500 Feb 18 Cash hearned in come 10500 Cash 40006 Feb-22 40000 Accounts Receivable 3360 Feb-25 Otility expense cash 3300 2000 feb.as Interest expense 2000 cash 6250 6250 6250 feb 25 Accounts payable cash to Scanned with the CamScanner

I Cash 32000 Building 15000 Insurance exp. 35480 prepaid Insurance Tosurance 5200 Balance bld Commonstock Tutoring service revenue Unearned socome Accounts Receivable 12301 10500 Wage expense 48000 Utilitas expense 3360 1250 Interest expense Accounts payable Balance cld. 32980 ACCOUNTS RGCEVIABLE Balance cld 36330 11000 cash 4000€ Balancebla Tutoring Service Revenue 35480 balancecla GUSO 46480 youse Cash 4200 ACCOUNTS PAYABLE 6250 Balance bld Sagpray expense 126u5o Building 3500 alancecla 125000 Scanned with CamScanner

op Balance bld munts pesyable Supplies 5600 3500 Balance cld 9100 $100 9100 Accounts PAYABLE Commonstock Balance bld 85000 15000 100000 Balance cld 100000 Cash 100000 Thos ! Building cash 2000 Accounts payable 125000 Balance cld 150000 15000 ISO900 Tutoring Service Revenue cash 7094 Accounts Receivable 35480 profit ond 1055 35480 70960 statement Togbo Scanned with CamScanner

Insurance Prepaid 5700 bakoce bold > 5200 Cash 5200 : 5200 Wage payable a Balance eld 12300 wage expense 12308 12300 not be 12300 Unearned Income Cash 10500 balanceeld 10500 10500 10500 Scanned with 12, CamScanner, .. .