Three former college classmates decided to open a store near campus to sell wireless equipment to students. They created
Posted: Wed May 04, 2022 6:54 am
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 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 WILL
NOT GIVE YOU CREDIT.
Transaction 1 On March 1, the three classmates opened a checking account for The Wire at a local bank. They each deposited $25,000 in exchange for shares of stock. A few of their friends also purchased stock for $10,000 that was deposited in The Wire account. [Note: Combine both transactions into one entry.] Account: ŵ Dollar amount: Account: Dollar amount: Cash Account: Dollar amount: Accounts Receivable Inventory Prepaid Rent Account: Dollar amount: Fixtures and Equipment Account: Accounts Payable Interest Payable Dollar amount: Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank My general preferences on what is marked as NEW Mark NEW posts no longer new Submit Ans Threaded Export Other Views ...
Transaction 2 The company quickly acquired $36,000 in inventory, 40% of which was acquired on open accounts that were payable after 30 days. The rest was paid for in cash. Account: ŵ Dollar amount: Account: Dollar amount: Account: ↑ Dollar amount: Account: Dollar amount: Account: Dollar amount: Submit Answer Tries 0/5
Transaction 3 A one-year store rental lease was signed on March 1 for $1,100 per month, 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 March 31 adjusting entry second.] Account: ŵ Dollar amount: Account: ↑ Dollar amount: Account: ŵ Dollar amount: Account: Dollar amount: Account: Dollar amount: Submit Answer Tries 0/5
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.] Account: Dollar amount: Account: ↑ Dollar amount: Account: ŵ Dollar amount: Account: ↑ Dollar amount: Account: Dollar amount: Submit Answer Tries 0/5
Transaction 5 Sales were $62,000. Cost of merchandise sold was 65% of sales. 80% of sales were on open account. [Note: Record the complete sales entry first, and the complete expense entry second.] Account: ŵ Dollar amount: Account: Dollar amount: Account: Dollar amount: Account: ↑ Dollar amount: Account: Dollar amount: Account: ŵ Dollar amount: Submit Answer Tries 0/5
Transaction 6 Wages and salaries in March were $10,900, of which $8,800 was actually paid to employees. Account: ŵ Dollar amount: Account: ŵ Dollar amount: Account: ŵ Dollar amount: Account: ŵ Dollar amount: Account: Dollar amount: Submit Answer Tries 0/5
Transaction 7 Miscellaneous expenses were $1,200, all paid for with cash. Account: ↑ Dollar amount: Account: ŵ Dollar amount: Account: ŵ Dollar amount: Account: ŵ Dollar amount: Submit Answer Tries 0/5
Transaction 8 [4 points] 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 4.5% per year was due when the note was repaid. The estimated life of the fixtures and equipment is 10 years with no expected salvage value. [Note: Record the complete March 1 entry for the equipment purchase first, the complete March 31 depreciation adjusting entry second, and the complete March 31 interest adjusting entry third.] Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: ŵ ^ ŵ
Transaction 9 Cash dividends totaling $4,400 were paid to stockholders on March 31. Account: Dollar amount: Account: ↑ Dollar amount: Account: Dollar amount: Account: ↑ Dollar amount: Account: Dollar amount: Submit Answer Tries 0/5
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 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 WILL
NOT GIVE YOU CREDIT.
- Three Former College Classmates Decided To Open A Store Near Campus To Sell Wireless Equipment To Students They Created 1 (363.41 KiB) Viewed 45 times
Transaction 2 The company quickly acquired $36,000 in inventory, 40% of which was acquired on open accounts that were payable after 30 days. The rest was paid for in cash. Account: ŵ Dollar amount: Account: Dollar amount: Account: ↑ Dollar amount: Account: Dollar amount: Account: Dollar amount: Submit Answer Tries 0/5
Transaction 3 A one-year store rental lease was signed on March 1 for $1,100 per month, 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 March 31 adjusting entry second.] Account: ŵ Dollar amount: Account: ↑ Dollar amount: Account: ŵ Dollar amount: Account: Dollar amount: Account: Dollar amount: Submit Answer Tries 0/5
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.] Account: Dollar amount: Account: ↑ Dollar amount: Account: ŵ Dollar amount: Account: ↑ Dollar amount: Account: Dollar amount: Submit Answer Tries 0/5
Transaction 5 Sales were $62,000. Cost of merchandise sold was 65% of sales. 80% of sales were on open account. [Note: Record the complete sales entry first, and the complete expense entry second.] Account: ŵ Dollar amount: Account: Dollar amount: Account: Dollar amount: Account: ↑ Dollar amount: Account: Dollar amount: Account: ŵ Dollar amount: Submit Answer Tries 0/5
Transaction 6 Wages and salaries in March were $10,900, of which $8,800 was actually paid to employees. Account: ŵ Dollar amount: Account: ŵ Dollar amount: Account: ŵ Dollar amount: Account: ŵ Dollar amount: Account: Dollar amount: Submit Answer Tries 0/5
Transaction 7 Miscellaneous expenses were $1,200, all paid for with cash. Account: ↑ Dollar amount: Account: ŵ Dollar amount: Account: ŵ Dollar amount: Account: ŵ Dollar amount: Submit Answer Tries 0/5
Transaction 8 [4 points] 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 4.5% per year was due when the note was repaid. The estimated life of the fixtures and equipment is 10 years with no expected salvage value. [Note: Record the complete March 1 entry for the equipment purchase first, the complete March 31 depreciation adjusting entry second, and the complete March 31 interest adjusting entry third.] Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: ŵ ^ ŵ
Transaction 9 Cash dividends totaling $4,400 were paid to stockholders on March 31. Account: Dollar amount: Account: ↑ Dollar amount: Account: Dollar amount: Account: ↑ Dollar amount: Account: Dollar amount: Submit Answer Tries 0/5