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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

Equipment $601$ Salaries expense

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.

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.

Paid my roommate $$375$ for my half of the rent on my apartment where I live.

Purchased $$380$ of supplies with cash from Circuit City.

Customer Sarah Church dropped of a device for repair and a cash prepayment of $$50.$

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$.$

Customer Dr$.$ Embert prepaid $$4,000$ for a device he plans to deliver to me on March $3$rd for repair.

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.

Received $$1,000$ from John Stewart as payment on the work billed on February $18$th$.$

I took $$5,000$ out of the business bank for myself.

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

Requirement

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

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