Requirement 1; Journal Entries

Date Account Titles Debit Credit

Feb 1, 2020 Cash $ 8,500.00
Consulting Revenues $ 8,500.00

Feb 5, 2020 Accounts Payable $ 5,000.00

Cash $ 5,000.00

Feb 10, 2020 Cash $ 3,600.00

Unearned Revenue $ 3,600.00

Feb 12, 2020 No entry

Feb 17, 2020 Aaron Paquette, Withdrawals $ 3,000.00

Cash $ 3,000.00

Feb 18, 2020 Salaries Expense $ 10,000.00

Cash $ 10,000.00
Requirement 2: T Accounts
Cash Account Receivable Office Equipement
Jan 31, Beg Bal $ 15,000.00 $ 5,000.00 Feb 5 Jan 31, Beg Bal $ 3,800.00 Jan 31, Beg Bal $ 22,500.00
Feb 1 $ 8,500.00 $ 3,000.00 Feb 17
Feb 10 $ 3,600.00 $ 10,000.00 Feb 18
$ 27,100.00 $ 18,000.00
$ 9,100.00

Accounts Payable Unearned Revenue Aaron Paquette, Capital

Feb 5 $ 5,000.00 $ 8,000.00 Jan 31, Beg Bal $ 2,600.00 Jan 31, Beg Bal $ 9,500.00 Jan 31, Beg Bal
$ 3,000.00 $ 3,600.00 Feb 10
$ 6,200.00

Aaron Paquette,
Consulting Revenues Salaries Expense
Withdrawals
Jan 31, Beg Bal $ 2,000.00 $ 41,700.00 Jan 31, Beg Bal Jan 31, Beg Bal $ 10,000.00
Feb 17 $ 3,000.00 $ 8,500.00 Feb 1 Feb 18 $ 10,000.00
$ 5,000.00 $ 50,200.00 $ 20,000.00

Rent Expense Utilities Expense Expense

Jan 31, Beg Bal $ 7,500.00 Jan 31, Beg Bal $ 1,000.00
Requirement 3
Paquette Advisors
Trial Balance
February 28, 2020

Debit Credit
Cash $ 9,100.00
Account Receivable $ 3,800.00
Office Equipement $ 22,500.00
Accounts Payable $ 3,000.00
Unearned Revenue $ 6,200.00
Aaron Paquette, Capital $ 9,500.00
Aaron Paquette, Withdrawals $ 5,000.00
Consulting Revenues $ 50,200.00
Salaries Expense $ 20,000.00
Rent Expense $ 7,500.00
Utilities Expense Expense $ 1,000.00
Totals $ 68,900.00 $ 68,900.00
Requirement 4: Income Statement

Paquette Advisors
Income Statement
For the Month Ended February 28, 2020

Revenue:
Consulting Revenues $ 50,200.00
Expenses:
Salaries Expense $ 20,000.00
Rent Expense $ 7,500.00
Utilities Expense Expense $ 1,000.00
Total Expenses $ 28,500.00
Net Income $ 21,700.00

Requirement 5: Statement of Changes in Owner's Equity

Paquette Advisors
Statement of Changes in Owner's Equity
For the Month Ended February 28, 2020

Aaron Paquette, Capital, January 31, 2020 $ 9,500.00

Net Income, for the month February 28, 2020 $ 21,700.00
Less: Aaron Paquette, Withdrawals $ (5,000.00)
Net Increase in Owner's Equity $ 16,700.00
Aaron Paquette, Capital, February 28, 2020 $ 26,200.00
Requirement 6: Balance Sheet

Paquette Advisors
Balance Sheet
February 28, 2020

ASSETS
Cash $ 9,100.00
Account Receivable $ 3,800.00
Office Equipement $ 22,500.00
Total Assets $ 35,400.00

LIABILITIES & OWNER'S EQUITY

Accounts Payable $ 3,000.00
Unearned Revenue $ 6,200.00
Aaron Paquette, Capital $ 26,200.00
Total Liabilities & Owner's Equity $ 35,400.00

Unearned revenue is recorded on an owner's balance sheet as a liability. It is treated

as a liability because the revenue has still not been earned and represents services
owed to a customer.