These are what could go in the boxes for account: Three former college classmate

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These are what could go in the boxes for account:

Three former college classmates have decided to pool a variety of work experiences by opening a store near campus to sell wireless equipment to students. The business has been incorporated as University Wireless. Required: Several transactions occurred in March. Each is described separately in this folder. For each transaction, indicate the accounts that are affected, whether they increase or decrease, and the amount of the increase or decrease. YOU MUST FOLLOW THE INSTRUCTIONS BELOW. IF YOU DON'T, YOU MAY KNOW THE CORRECT ENTRY BUT THE COMPUTER WILL NOT RECOGNIZE IT AND YOU WILL NOT RECEIVE CREDIT. 1. After each transaction description, there are several "Account" submission boxes and corresponding "Amount" submission boxes. To indicate the accounts that you think are affected, choose them from the drop-down menu. But you MUST select them in the order that they are listed in the menu. FOR EXAMPLE, if you think that Cash and Inventory are affected by a particular transaction, you must record the Cash impact first and the Inventory impact second because that is the order that they are listed in the drop-down menu. If you record the Inventory impact first and the Cash impact second, even if they are the correct accounts and even if you have the correct dollar amounts, your answer will be considered wrong. 2. When you record the dollar amounts, be sure to use a minus sign to indicate a decrease in the account. You don't need to use a plus sign to indicate an increase. 3. There are always more "Account" and "Amount" submission boxes available than are necessary. When you have indicated all the accounts that are affected by the transaction, select "Leave Blank" from the drop-down menu for EACH of the remaining "Account" submission boxes (you can leave the "Amount" boxes blank) 4. For transactions 3, 4, 5, and 8, you are given additional instructions. Read them carefully. 5. You get 5 tries for each complete entry 6. The entries for transaction #8 is worth 2 points. The entries for each of the other transactions are worth 1 point.

Explanation / Answer

Transaction no. Account Increase / Decrease Dollar amount 1. Cash Increase 30,000 Paid-in Capital Increase 30,000 2. Cash Decrease -15,200 Inventory Increase 38,000 Accounts payable Increase 22,800 3. Cash Decrease -1,100 Prepaid rent Increase 1,100 4. Cash Decrease -3,000 Accounts payable Increase 6,500 Retained earnings Decrease -9,500 5. Cash Increase 26,600 Accounts receivable Increase 49,400 Inventory Decrease -41,800 Retained earnings Increase 76,000 Retained earnings Decrease -41,800 6. Cash Decrease -4,300 Wages payable Increase 5,700 Retained earnings Decrease -10,000 7. Cash Decrease -1,400 Retained earnings Decrease -1,400 8. Cash Decrease -1,500 Fixtures and equipment Increase 4,500 Notes payable Increase 3,000 9. Cash Decrease - 4,400 Retained earnings Decrease -4,400

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