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:

Hi friend!

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.

Here is the Chart of Accounts that was set-up for me.

Acct. Acct.

No. Account Name No. Account Name

101 Cash 301 C. Ella, Capital

104 Accounts receivable 302 C. Ella, Drawing

110 Prepaid insurance 350 Income summary

115 Supplies 401 Repair fees earned

1. Equipment 601 Salaries expense
2. Accumulated depreciation - equipment 610 Rent expense

201 Accounts payable 611 Utilities expense

203 Salaries payable 615 Insurance expense

205 Unearned revenue 640 Supplies expense

250 Loan payable 660 Depreciation expense

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.

1. 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 18^th when he picked up his device.
2. Paid my roommate $375 for my half of the rent on my apartment where I live.
3. Purchased $380 of supplies with cash from Circuit City.
4. Customer Sarah Church dropped of a device for repair and a cash prepayment of $50.
5. 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 18^th.

1. Customer Dr. Embert prepaid $4,000 for a device he plans to deliver to me on March 3^rd for repair.
2. 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.
3. Received $1,000 from John Stewart as payment on the work billed on February 18^th.
4. I took $5,000 out of the business bank for myself.
5. Received the February utility bill. It is for $95. I will pay it next month because it is not due until March 10^th.

Thanks for everything,

Cinder Ella

Generate an income statement, a statement of owner's equity, and a balance sheet for the month ending February 28, 2022.

Ella's Electronics
Income Statement
For the Month Ended February 28, 2022
	Revenues
	Total Revenue				$
	Expenses
	Total expenses
	Net Income				$

Ella's Electronics
Statement of Owner's Equity
For the Month Ended February 28, 2022
	Beginning capital account			-
	Add: Net Income			$
	Less: Drawing
	Ending capital account			$

Ella's Electronics
Balance Sheet
As of February 28, 2022
	Assets
			$
	Less:
	Total Assets		$
	Liabilities
			$
	Total Liabilities		$
	Stockholder's Equity
			$
	Total Stockholder's Equity
	Total Liabilities and Stockholder's Equity		$

Ella's Electronics Statement of Cash Flows For the Month Ended February 28, 2022
Cash flows from operating activities:
Cash received from revenue transactions	$
Cash paid for expenses
Net cash provided by operating activities			$
Cash flows from investing activities:
Purchase of equipment	$
Net cash used by investing activities
Cash flows from financing activities:
Investment by owner	$
Loan from bank
Withdrawals by owner
Increase in cash for month			$
Cash balance, February 1, 2022
Cash balance, February 28, 2022			$

Answer rating: 100% (QA)

Ellas Electronics Income Statement For the Month Ended February 28 2022 Revenues Amount Repair fees ... View the full answer