Art at your fingertips SA, is a company dedicated to teaching painting and sculpture to the community of Guadalajara. He has had problems keeping his accounts up to date, so he asks you to make the accounting records in his Journal book (Entries), for the month of February of this year. The balances in their accounts at the end of January of this year are as follows:

Cash $20,000

Clients $17,000

Material inventory $14,000

Equipment $38,000

D.E.P. accumulated equipment $12,000

Patent $19,000

Sundry creditors $27,000

VAT payable $3,000

Capital Stock $42,000

Retained earnings $24,000

Transactions for the month of February were as follows:

1. Classes given this month were charged for $8,600 plus VAT. 2. Oil and water paints, brushes, canvases, etc. were purchased for a net amount of $5,916. For those who have a warehouse. The purchase is made on credit. 3. At the beginning of the month, a loan was requested from HSBC for $16,500, for a term of 2 years, and this money is received on this date. 4. Utilities used last month were paid for $1,200 including VAT. (Invoice received since last month) 5. At the beginning of the month, the next 4 months of rent for the premises were paid. The total amount including VAT was $14,848. 6. Payments were received for classes to be given next month for $14,600 plus VAT. 7. Classes given last month were charged for $2,100 VAT included. The invoice was delivered since last month. 8. There are new partners who want to enter the business and for that they bought 1,000 shares of the company at $10 each (the par value of these shares is $8 each). The company receives $10,000 on this day. 9. $2,800 is paid from the pending account of entry number 2. 10. Teacher salaries for this fortnight are $15,000 and are due on this day. 11. Since the beginning of the month part of the equipment owned by the company was rented. On this day $3,000 plus VAT is charged from this month's rent. 12. The patent owned by the company is sold for $20,000 plus VAT.