GnP Consulting Engaged in the Following Transactions During February 2010

Essay

GnP Consulting engaged in the following transactions during February 2010.
Feb) 1 Callie Gordon and Bill Paxell each invested $15,000 to start the business. For the investment, each received 5,000 shares of $1 par value common stock.
Feb) 1 GnP rented office space for $1,500 per month. Three months of rent were paid at this time.
Feb) 1 Furniture for the office was rented for $800 per month. This amount was paid in cash and recorded as an expense at this time.
Feb) 1 Computer equipment costing $3,000 was purchased on account. It is estimated that the equipment will last for 24 months and have a $600 salvage value at that time.
Feb) 3 GnP purchased $750 of office supplies on account.
Feb) 5 A client paid GnP $480 for some consulting services.
Feb) 7 Consulting services worth $575 were performed for a client. The client will pay GnP on Feb. 28.
Feb) 10 Entertainment expenses costing $125 were incurred on account.
Feb) 13 Wages of $700 were paid to the receptionist.
Feb) 20 A payment of $1,000 was made on the computer equipment purchased on Feb. 1.
Feb) 28 The computer equipment was depreciated for February.
Feb) 28 Office rent expense for February was recorded.
Feb) 28 A count of office supplies indicated that $680 of supplies were still on hand.
Feb) 28 The receptionist was owed, but had not been paid, wages of $715 for the last part of the month.
Feb) 28 The utility bill of $438 for February was received. GnP will pay this bill on its due date of March 8.
Feb) 28 Received the amount due from the February 7th client.
Feb) 28 GnP declared a $250 dividend. This amount will be paid on March 15.
Required:
Prepare general journal entries for these transactions. Next to each account title, indicate whether that account will increase (+) or decrease (-) as a result of the transaction.