Content Three former college classmates have decided to pool a variety of work e

Question

Content 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 in which 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 incorrect. 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, you MUST 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 transaction (8 tries for transaction #8) 6. The entries for each transaction are worth 2 points (4 points for transaction #8)

Explanation / Answer

Answers

Transaction

Account

Dollar Amount

Increase/Decrease

1

Cash

$               80,000.00

Increase

Paid In Capital

$               80,000.00

Increase

2

Inventory

$               38,000.00

Increase

Cash

$               26,400.00

Increase

Acoounts payable

$               17,600.00

Increase

3

Prepaid Rent

$                 4,800.00

Increase

Cash

$                 4,800.00

Decrease

Rent Expense

$                 1,200.00

Increase

Prepaid Rent

$                 1,200.00

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

$               46,800.00

Increase

Inventory

$               46,800.00

Decrease

6

Wages & Salaries expense

$               11,800.00

Increase

Cash

$                 8,000.00

Decrease

Wages & Salaries payable

$                 3,800.00

Increase

7

Miscellaneous expense

$                 1,800.00

Increase

Cash

$                 1,800.00

Decrease

8

Equipment

$                 4,000.00

Increase

Cash

$                 1,000.00

Decrease

Notes payable

$                 3,000.00

Increase

Depreciation expense

$                       27.78 [4000/12 years x 1/12]

Increase

Accumulated Depreciation

$                      27.78

Increase

Interest expense

$                       11.25 [3000 x 4.5% x 1/12]

Increase

Interest payable

$                       11.25

Increase

9

Dividends

$                 4,000.00

Increase

Cash

$                 4,000.00

Decrease

Transaction

Account

Dollar Amount

Increase/Decrease

1

Cash

$               80,000.00

Increase

Paid In Capital

$               80,000.00

Increase

2

Inventory

$               38,000.00

Increase

Cash

$               26,400.00

Increase

Acoounts payable

$               17,600.00

Increase

3

Prepaid Rent

$                 4,800.00

Increase

Cash

$                 4,800.00

Decrease

Rent Expense

$                 1,200.00

Increase

Prepaid Rent

$                 1,200.00

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

$               46,800.00

Increase

Inventory

$               46,800.00

Decrease

6

Wages & Salaries expense

$               11,800.00

Increase

Cash

$                 8,000.00

Decrease

Wages & Salaries payable

$                 3,800.00

Increase

7

Miscellaneous expense

$                 1,800.00

Increase

Cash

$                 1,800.00

Decrease

8

Equipment

$                 4,000.00

Increase

Cash

$                 1,000.00

Decrease

Notes payable

$                 3,000.00

Increase

Depreciation expense

$                       27.78 [4000/12 years x 1/12]

Increase

Accumulated Depreciation

$                      27.78

Increase

Interest expense

$                       11.25 [3000 x 4.5% x 1/12]

Increase

Interest payable

$                       11.25

Increase

9

Dividends

$                 4,000.00

Increase

Cash

$                 4,000.00

Decrease

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.