JOURNAL ENTRIES FOR FRESH MARKET, INC.
The following transactions occurred for Fresh Market, Inc. for the quarter ended March 31, 2010:
· Total sales were $ 484,500 - 20% were on account.
· Of those sales on account, 95% were collected by the end of the quarter.
· $ 258,000 was spent buying produce to stock the store.
· By the end of the quarter, all but $ 6,060 of the produce has been sold.
· Payments were made for the following:
1. Salaries and Wages $ 130,000
2. Utilities $ 8,835
3. Rent $ 13,950
4. Supplies $ 17,000
5. Equipment Repairs $ 4,410
6. Loan Payments - $ 4,500 on principal and $ 3,150 for interest
· Depreciation on Store Fixtures and Equipment was $ 7,230.
· An estimated income tax payment for $ 19,130 was made.
· $ 1,940 in Supplies were unused at the end of the quarter.
· Employees earned $ 2,100 in wages that won't be paid until the third day of the next quarter.
Please assist with the following:
1. Prepare the journal entries to reflect the above transactions.
2. Circle every account in the journal entry that is a Balance Sheet account.
3. Did the Cash account increase or decrease during the quarter? By how much?
4. Prepare an Income Statement for the Quarter ended March 31, 2009.