Transaction Problem, please show me the the dollar amount and account during eac

Question

Transaction Problem, please show me the the dollar amount and account during each Transaction, thanks!

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.

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.

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.

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).

For transactions 3, 4, 5, and 8, you are given additional instructions. Read them carefully.

You get 5 tries for each complete entry.

The entries for transaction #8 is worth 2 points. The entries for each of the other transactions are worth 1 point.

Transaction 1
On March 1, three former classmates invested a total of $42,000 in cash in exchange for 1,000 shares of stock each.

Transaction 2
The corporation quickly acquired $35,000 in inventory, 40% 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 $450 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 for cash of $2,500 from a newspaper owned by one of the stockholders; additional advertising services of $5,500 were acquired on account. [Note: Combine both transactions into one entry].

Transaction 5
Sales were $66,000. Cost of merchandise sold was 50% of its sales price. 30% of the sales were for cash. [Note: Record the sales transaction first and the expense transaction second]

Transaction 6
Wages and salaries incurred in March amounted to $11,200, of which $4,300 was paid.

Transaction 7
Miscellaneous expenses paid for in cash were $1,800.

Transaction 8
On March 1, fixtures and equipment were purchased for $4,000 with a downpayment of $2,000 plus a $2,000 note payable in one year. Interest of 6% per year is due when the note is repaid. The estimated life of the fixtures and equipment is 9 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 $3,600 were declared and paid to stockholders on March 31.

Explanation / Answer

i) Store, Rent receivable

ii) Cash and lease rentals

i) $5400

ii) $1350

i) Sales, Cash, accounts receivable

ii) Cost of merchandise sold and sales

i) $66000

ii) $33000

i) fixtures and equipment, cash, notes payable

ii)  fixtures and equipment, depreciation

iii) interest payable, notes payable

i) $4000

ii) $222.22

iii) $120

Transactions Accounts effected Amount 1. Cash and Common Stock $42000 2. Cash, Accounts payable and inventory $35000 3.

i) Store, Rent receivable

ii) Cash and lease rentals

i) $5400

ii) $1350

4. Advertising, Common Stock and cash $8000 5.

i) Sales, Cash, accounts receivable

ii) Cost of merchandise sold and sales

i) $66000

ii) $33000

6 Accrued Wages and salaries, Cash and Wages and salaries $11200 7 Miscellaneous expenses and cash $1800 8

i) fixtures and equipment, cash, notes payable

ii)  fixtures and equipment, depreciation

iii) interest payable, notes payable

i) $4000

ii) $222.22

iii) $120

9 Dividens, cash $3600

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