Transaction Problem, please show me the the dollar amount and account during eac
ID: 2533504 • Letter: T
Question
Transaction Problem, please show me the the dollar amount and account during each Transaction
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.
Transaction 1
On March 1, the three classmates opened a checking account for The Wire at a local bank. They each deposited $21,000 in exchange for shares of stock. A few of their friends also purchased stock totaling $10,000 that was deposited in The Wire account.
Transaction 2
The company quickly acquired $44,000 in inventory, 60% of which was acquired on open accounts that were payable after 30 days. The rest was paid for in cash.
Transaction 3
A one-year store rental lease was signed on March 1 for $14,400 for the year, and rent for the first 3 months was paid in advance. [Note: Record the complete entry for the March 1 transaction first and the complete adjusting entry on March 31 second.]
Transaction 4
The owners paid $4,000 for website advertising. They were able to get a good deal because one of the company's owners also owns stock in the website company. The owners also paid $6,000 for some advertising in local newspapers. [Note: Combine both transactions into one entry].
Transaction 5
Sales were $72,000. Cost of merchandise sold was 60% of its sales price. 25% of the sales were for cash. [Note: Record the complete entry for the sales first and the complete entry for the expenses second]
Transaction 6
Wages and salaries in March were $11,200, of which $8,600 was actually paid to employees.
Transaction 7
Miscellaneous expenses were $1,700, all paid for with cash.
Transaction 8
On March 1, fixtures and equipment were purchased for $5,500 with a downpayment of $2,000 and a $3,500 note, payable in one year. Interest of 5% per year was due when the note was repaid. The estimated life of the fixtures and equipment is 11 years with no expected salvage value. [Note: Record the complete entry for the March 1 equipment purchase first, the March 31 depreciation adjusting entry second, and the March 31 interest adjusting entry third. Also, round all answers to the nearest cent.]
Transaction 9
Cash dividends totaling $3,600 were paid to stockholders on March 31.
Explanation / Answer
Transaction Account Dollar Amount Increase/Decrease 1 Cash $ 73,000.00 Increase Paid In Capital $ 73,000.00 Increase 2 Inventory $ 44,000.00 Increase Cash $ 17,600.00 Increase Acoounts payable $ 26,400.00 Increase 3 Prepaid Rent $ 14,400.00 Increase Cash $ 14,400.00 Decrease Rent Expense $ 4,800.00 Increase Prepaid Rent $ 4,800.00 Decrease 4 Advertising expense $ 10,000.00 Increase Cash $ 10,000.00 Decrease 5 Cash $ 18,000.00 Increase Accounts receivables $ 54,000.00 Increase Sales Revenue $ 72,000.00 Increase Cost of Goods Sold $ 43,200.00 Increase Inventory $ 43,200.00 Decrease 6 Wages & Sallaries expense $ 11,200.00 Increase Cash $ 8,600.00 Decrease Wages & Salaries payable $ 2,600.00 Increase 7 Miscellaneous expense $ 1,700.00 Increase Cash $ 1,700.00 Decrease 8 Equipment $ 5,500.00 Increase Cash $ 2,000.00 Decrease Notes payable $ 3,500.00 Increase Depreciation expense $ 41.67 Increase Accumulated Depreciation $ 41.67 Increase Interest expense $ 14.58 Increase Interest payable $ 14.58 Increase 9 Dividends $ 3,600.00 Increase Cash $ 3,600.00 Decrease
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.