Reference no: EM133716435

Your friend, Cinder Ella, has opened an electronic repair company called Ella's Electronics. Cinder has always had a knack for repairing anything electronic. These types of devices just make sense to her. What does not make sense to her, is accounting. Because of this, she needs someone to help her out with her books. Cinder knows that you have been thoroughly enjoying your accounting class (who wouldn't!), and has asked you to assist her. You feel confident in your newly acquired financial accounting skills and agree.

On your first day of work, you receive the following email from Cinder:

Thanks again for agreeing to help me out with "keeping the books." I am completely lost! Financial statements might as well be written in a foreign language but I know I need them for my bank.

Since I didn't know what you might need, I have written down everything that has happened since I opened my business. Here it is:

February

1 I invested $2,500 cash and $1,580 of supplies into the business. I also opened a bank account in the business's name.

1 Purchased a 12-month business insurance policy for $1,200.

1 Took out a small business loan of $5,000 from My Local Bank. The first payment will not be due until the end of March.

1 Purchased repair equipment for $2,100 cash. This equipment should last for about five years. 3 Paid landlord $875 for January rent on my repair shop.

Customer John Stewart brought in a device for repair. It took me two weeks to complete the repair. I gave John an invoice for $10,900 on February 18th when he picked up his device.
Paid my roommate $375 for my half of the rent on my apartment where I live.
Purchased $380 of supplies with cash from Circuit City.
Customer Sarah Church dropped of a device for repair and a cash prepayment of $50.
Paid assistant's salary of $1,200. I have one worker who I pay every two weeks on Friday. 16 Purchased $440 of supplies on account from Technology Warehouse.
18 Completed Sarah Church's repair. Total repair charge was $75. Sarah paid the remaining balance when she picked up her device on February 18th.

Customer Dr. Embert prepaid $4,000 for a device he plans to deliver to me on March 3rd for repair.
Discussed potential contract with local computing firm. Will likely be worth $45,000 of work. They will let me know in the next couple of months if they want to move forward.
Received $1,000 from John Stewart as payment on the work billed on February 18th.
I took $5,000 out of the business bank for myself.
Received the February utility bill. It is for $95. I will pay it next month because it is not due until March 10th.
Thanks for everything,

Cinder Ella

Adjusting Information

At the end of February, the following information is determined:

One month of the business insurance coverage has expired.
At the end of February, $880 of the supplies have been used.
Assistant is paid every two weeks on Friday. Since February 28th fell on a Thursday, the majority of her biweekly pay ($1,080) is unrecorded at February 28th.
The equipment is expected to last 5 years and is expected to have no residual value. Depreciation should be recorded at the end of every month.
Cinder had completed a repair job worth $3,000 at the end of February but hadn't had a chance to bill customer Adam Hamm for it yet.
Note: All the answers should be tabulated

Requirements

Journalize the closing entries at February 28, 2022
. Post the closing entries.
Generate a post-closing trial balance at February 28, 2022.