Susie started a grocery business on 1/1/2015 with an initial investment of $60,000. She rented a place to open the store. The rent was $1,500 per month. In order to lock in at the current rate, she was asked to sign a 2-year leasing contract and pay the full amount on the date of the contract.
The following were the transactions of the business for the three months ended 3/31/2015.
1/6 Purchased a used cargo van for $2,000 cash
1/9 Purchased goods on credit from suppliers for $5,000
1/16 Paid wages $600
1/20 Purchased goods for cash $1,800
1/24 Sold goods on credit to Happiness for $2,100, and the credit terms are 2/15, n/60.
1/30 Paid wages $600
2/4 Sold goods on credit to Mrs. Green for $1,600, and the credit terms are 2/10, n/30.
2/6 Paid half of its account payable with cash.
2/9 Happiness paid off the money they owe.
2/13 Paid wages $600
2/18 Purchased goods on credit from suppliers for $7,000
2/25 Sold goods for cash $2,500
2/26 Mrs. Green paid back the money she owed
2/27 Paid wages $600
3/1 Returned defective goods to suppliers and was credited $400
3/4 Sold goods on credit to Happiness for $5,000
3/12 Paid wages $600
3/26 Paid wages $600
3/31 Accrue wage of $500.
Requirements
1. Perform the entire accounting cycle (no need to prepare financial statements). You can stop at Step 9, the post-closing adjusted trial balance.
2. Calculate the profit margin.