Options for the accounts are shown on tranaction 1 Three former college classmat

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Options for the accounts are shown on tranaction 1

Three former college classmates decided to open a store near campus to sell wireless equipment to students. They created a public company, The Wire, and issued stock to interested investors. They plan on creating monthly financial statements Required: Several transactions occurred in March. Each is described separately in this folder. For each transaction, indicate the accounts for The Wire that are affected, whether they increase or decrease, and YOU MUST FOLLOW THE INSTRUCTIONS BELOW. IF YOU DON'T, YOU MAY KNOW THE CORRECT ENTRY BUT THE COMPUTER WILL NOT RECOGNIZE IT AND WILL NOT GIVE YOU CREDIT. the amount of the increase or decrease. 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 effect on the Cash account first and the effect on the Inventory account second, since that is the order in which they are listed in the drop-down menu. If you record the Inventory effect first and the Cash effect second, even if they are the correct accounts with 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. Also, don't use a dollar sign or spaces. 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 EAC 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. S. You get 5 tries for each complete entry 6. The entries for transaction #8 is worth 4 points. The entries for each of the other transactions are worth 2 points

Explanation / Answer

Transaction 1 Account Cash Dollar Amount $82,000 Account Paid-in-Capital Dollar Amount $82,000 Account Leave Blank Dollar Amount Account Leave Blank Dollar Amount Account Leave Blank Dollar Amount Transaction 2 Account Cash Dollar Amount ($25,900) Account Inventory Dollar Amount $37,000 Account Accounts Payable Dollar Amount $11,100 Account Leave Blank Dollar Amount Account Leave Blank Dollar Amount Transaction 3 Account Cash Dollar Amount ($3,300) Account Prepaid Rent Dollar Amount $3,300 Account Prepaid Rent Dollar Amount ($1,100) Account Retained Earnings Dollar Amount ($1,100) Account Leave Blank Dollar Amount Transaction 4 Account Cash Dollar Amount ($4,000) Account Accounts Payable Dollar Amount $7,000 Account Retained Earnings Dollar Amount ($11,000) Account Leave Blank Dollar Amount Account Leave Blank Dollar Amount Transaction 5 Account Cash Dollar Amount $13,200 Account Accounts Receivable Dollar Amount $52,800 Account Retained Earnings Dollar Amount $66,000 Account Inventory Dollar Amount ($39,600) Account Retained Earnings Dollar Amount $39,600 Transaction 6 Account Cash Dollar Amount ($9,000) Account Wages Payable Dollar Amount $2,500 Account Retained Earnings Dollar Amount ($11,500) Account Leave Blank Dollar Amount Account Leave Blank Dollar Amount Transaction 7 Account Cash Dollar Amount ($1,300) Account Retained Earnings Dollar Amount ($1,300) Account Leave Blank Dollar Amount Account Leave Blank Dollar Amount Account Leave Blank Dollar Amount Transaction 8 Account Cash Dollar Amount ($2,000) Account Fixtures and Equipment Dollar Amount $5,000 Account Notes Payable Dollar Amount $3,000 Account Fixtures and Equipment Dollar Amount ($417) Account Retained Earnings Dollar Amount ($417) Account Interest Payable Dollar Amount $15 Account Retained Earnings Dollar Amount ($15) Account Leave Blank Dollar Amount

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