Question

Below are the transactions for Ute Sewing Shop for March, the first month of operations.

Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 - 10). Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances.

March		1		Issue common stock in exchange for cash of $2,900.
March		3		Purchase sewing equipment by signing a note with the local bank, $2,600.
March		5		Pay rent of $590 for March.
March		7		Martha, a customer, places an order for alterations to several dresses. Ute estimates that the alterations will cost Martha $790. Martha is not required to pay for the alterations until the work is complete.
March		12		Purchase sewing supplies for $129 on account. This material will be used to provide services to customers.
March		15		Ute delivers altered dresses to Martha and receives $790.
March		19		Ute agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Ute receives $690 from Bob and promises the suits to be completed by March 25.
March		25		Ute delivers 10 altered business suits to Bob.
March		30		Pay utilities of $94 for the current period.
March		31		Pay dividends of $145 to stockholders.

Answer 1

GENERAL JOURNAL
Date	Particulars	Debit	Credit
March 1	Cash	$ 2,900
	Common Stock		$ 2,900
	(Issue of common stock for cash)
March 3	Equipment	$ 2,600
	Notes Payable		$ 2,600
	(Purchased equipment on accoount)
March 5	Rent Expense	$ 590
	Cash		$ 590
	(Paid monthly rental expense in cash)
March 12	Supplies	$ 129
	Accounts payable		$ 129
	(Purchased supplies on account)
March15	Cash	$ 790
	Service Revenue		$ 790
	(Rendered service to customer)
March 19	Cash	$ 690
	Deferred Revenue		$ 690
	(Received cash advances from Customers)
March 25	Deferred Revenue	$ 690
	Service Revenue		$ 690
	(Services provided against advance on March 19)
March 30	Utilities Expense	$ 94
	Cash		$ 94
	(Paid monthly utilities in cash)
March 31	Dividends	$ 145
	Cash		$ 145
	(Paid cash dividends to Stockholders

Notes:

1. For the transaction dated March 07 no entry is required to be booked. Since no services has been rendered and no payments received.

TRIAL BALANCE is as follows

Ute Sewing Shop
Particulars	Debit $	Credit $
Cash	3551
Supplies	129
Equipment	2600
Accounts Payable		129
Notes Payable		2600
Common Stock		2900
Dividend	145
Service Revenue		1480
Rent Expense	590
Utilities Expense	94
TOTAL	$ 7109	$ 7109

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