The trial balance of My Motor, Inc. on March 1, 20XX, lists the entity's assets, liabilities, and owner's equity on that date.
|
Balance
|
|
Account Title
|
Debit
|
Credit
|
|
Cash
|
26,000
|
|
|
Accounts receivable
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4,500
|
|
|
Accounts payable
|
|
2,000
|
|
Common Stock
|
|
20,500
|
|
Retained earnings
|
|
8,000
|
|
Total
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30,500
|
30,500
|
During March, the business engaged in the following transactions:
a. Borrowed $45,000 from the bank and signed a note payable in the name of the business.
b. Paid cash of $40,000 to acquire land.
c. Performed service for a customer and received cash of $5,000.
d. Purchased supplies on account, $300.
e. Performed customer service and earned revenue on account, $2,600.
f. Paid $1,200 on account.
g. Paid the following cash expenses: salaries, $3,000; rent, $1,500; and interest, $400.
h. Received $3,100 on account.
i. Received a $200 utility bill that will be paid next week.
j. Paid cash dividends of $1,800.
Required:
1) Prepare journal entries for each transaction. Enter journal entries by the transaction letter.
2) Prepare the trial balance of My Motors, Inc. at March 31, 20XX.
3) Prepare financial statements for My Motors, Inc. for the period ending March 31, 20XX. (Income Statement and Balance sheet)
Note: Posting the transactions using the T-account format may be helpful, but is not required to be submitted.