Problem - Create journal entries for the February 2016 transactions below for sunflower designs
a. On February 1st, office furniture was purchased on credit totaling $2,500. The estimated useful life of the furniture is seven (7) years and is expected to have no salvage value.
b. On February 2nd, an automobile insurance policy was purchased. There was a substantial discount for paying the full annual premium in advance. The cost of this policy was $1,200.
c. On February 5th, $125 of office supplies were purchased on credit and used in the month of February.
d. On February 5th, Sunflower Designs paid the invoice from Iron Works, a subcontractor, for several custom pieces Mary had ordered. The invoice was dated January 17th in the amount of $3,250. The terms of the invoice are 2/10, net 30.
e. On February 19th, a customer paid for the custom designed lamp purchased in January. The selling price was $250.
f. On February 22nd, a check was issued to cover to office furniture purchased on February 1st.
g. On February 23rd, Sunflower Designs paid for supplies purchased on credit in January to finish a custom contract order that was prepaid in December. The cost of the supplies was $5,650.
h. On February 25th, Mary delivered order received in December. The customer had paid$32,500 when the order was placed.
i. On February 25th, $5,650 worth of supplies were taken from inventory and used to complete to complete the prepaid December order.
j. On February 29th, Sunflower Designs collected the full invoiced amount for $25,000 of custom orders that were delivered in the month of January.
k. On February 29th, an order received from B. Smith for an interior design layout was completed and invoiced. The total contract price was $15,000. A 10% deposit on the order was paid when the contract was signed.
l. On February 29th, Sunflower Designs recorded the $3,500 cost of labor for a draftsman for drawing up the detailed layout for an interior design project.