M Ratajczyk opened the Big D Emporium on March 1, 2017. During March, the follow
ID: 2610318 • Letter: M
Question
M Ratajczyk opened the Big D Emporium on March 1, 2017. During March, the following transactions were completed: March 1 Issued 10,000 shares of common stock for $25,000 cash 1 Purchased used servers for $10,000, paying $6,000 cash and the balance on account. 3 Purchased office supplies for $1,500 on account. 5 Paid $2,400 cash on 1-year insurance policy effective March 1 14 Billed customers $4,200 for data analysis services. 18 Paid $1,500 cash on amount owed on servers and $500 on amount owed on office supplies. 20 Paid $2,750 cash for employee salaries 21 Collected $1,400 cash from customers billed on March 14. 28 Billed customers $6,200 for data analysis services. 31 Paid $350 for server maintenance which did not extend the life or function of the servers. 31 Declared and paid $900 cash dividend. Required: 1. 2. 3. 4. Journalize the March transactions. Post to the ledger accounts. Prepare a trial balance at March 31. Journalize the following adjustments: a. Earned but unbilled and uncollected revemue at March 31 was $800 b. Depreciation on equipment for the month was $650 c. One-twelfth of the insurance policy expired d. An inventory count shows $280 of office supplies on hand at March 31 e. Incurred employee salaries but unpaid were $1,060. 5. Post adjusting entries to the general ledger. 6. Prepare an adjusted trial balance. 7. Prepare the income statement and a retained earnings statement for March and a classified balance sheet at March 31 8. Journalize and post closing entries and complete the closing process 9. Prepare a post-closing trial balance at March 31.Explanation / Answer
As per policy, only four parts of a question is allowed to answer, so answering 1 - 4 :
1) Journal Entries :
Credit $
2) T-Accounts - Ledger Accounts :
3) Trial Balance as on Mar 31, 2017 :
4) Adjustment Journal Entries :
Date Accounts Titles Debit $Credit $
Mar 1 2017 Cash 25000 Common Stock 25000 1 Equipment 10000 Cash 6000 Accounts Payable 4000 (purchase of used server) 3 Off. Supplies 1500 AP 1500 5 Prepaid Ins 2400 Cash 2400 14 AR 4200 Service Revenue 4200 18 AP 2000 Cash 2000 20 Salary Expense 2250 Cash 2250 21 Cash 1400 AR 1400 28 AR 6200 Service Revenue 6200 31 Maintenance Exp. 350 Cash 350 31 Dividend Exp. 900 Cash 900Related Questions
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