Transaction 1
On March 1, each of two former classmates invested $12,000 in cash in exchange for 1,000 shares of stock each.
Transaction 2
The corporation quickly acquired $44,000 in inventory, 60% of which was paid for in cash. The rest was acquired on open accounts that were payable after 30 days.
Transaction 3
A store was rented for $550 per month. A lease was signed for one year on March 1. Rent for the first 3 months was paid in advance. [Note: Record the March 1 transaction first and the March 31 adjustment second.]
Transaction 4
Advertising was purchased on open account for $2,000 from a newspaper owned by one of the stockholders; additional advertising services of $6,500 were acquired for cash. [Note: Combine both transactions into one entry].
Transaction 5
Sales were $70,000. Cost of merchandise sold was 65% of its sales price. 60% of the sales were on open account. [Note: Record the sales transaction first and the expense transaction second]
Transaction 6
Wages and salaries incurred in March amounted to $10,600, of which $4,300 was paid.
Transaction 7
Miscellaneous expenses paid for in cash were $2,000.
Transaction 8
On March 1, fixtures and equipment were purchased for $6,000 with a downpayment of $1,000 plus a $5,000 note payable in one year. Interest of 5% per year is due when the note is repaid. The estimated life of the fixtures and equipment is 8 years with no expected salvage value. Depreciation on the fixtures and equipment is computed on a straight-line basis. [Note: Record the March 1 equipment purchase first, then the March 31 depreciation adjusting entry, and finally the March 31 interest adjusting entry. Also, round all answers to the nearest cent.]
Transaction 9
Cash dividends totalling $3,800 were declared and paid to stockholders on March 31.
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Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank Dollar amount: