Question

In: Accounting

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

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

March 1 Issue common stock in exchange for cash of $2,800.
March 3 Purchase sewing equipment by signing a note with the local bank, $2,500.
March 5 Pay rent of $580 for March.
March 7 Martha, a customer, places an order for alterations to several dresses. Ute estimates that the alterations will cost Martha $780. Martha is not required to pay for the alterations until the work is complete.
March 12 Purchase sewing supplies for $128 on account. This material will be used to provide services to customers.
March 15 Ute delivers altered dresses to Martha and receives $780.
March 19 Ute agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Ute receives $680 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 $93 for the current period.
March 31 Pay dividends of $140 to stockholders.

Please put in journal entry

Issue common stock in exchange for cash of $2,800.

Date Account Title Debit Credit
March 01 Cash 2,800
Common Stock 2,800

Purchase sewing equipment by signing a note with the local bank, $2,500.

Date Account Title Debit Credit
March 03 Equipment 2,500
2,500

Pay rent of $580 for March.

Date Account Title Debit Credit
March 05 580
580

Martha, a customer, places an order for alterations to several dresses. Ute estimates that the alterations will cost Martha $780. Martha is not required to pay for the alterations until the work is complete.

Date Account Title Debit Credit
March 07

Purchase sewing supplies for $128 on account. This material will be used to provide services to customers.

Date Account Title Debit Credit
March 12

Ute delivers altered dresses to Martha and receives $780.

Date Account Title Debit Credit
March 15

Ute agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Ute receives $680 from Bob and promises the suits to be completed by March 25.

Date Account Title Debit Credit
March 19

Ute delivers 10 altered business suits to Bob.

Date Account Title Debit Credit
March 25

Pay utilities of $93 for the current period.

Date Account Title Debit Credit
March 30

Solutions

Expert Solution

Date Account Title Debit Credit
March 01 Cash 2800
     Common Stock 2800
Date Account Title Debit Credit
March 03 Equipment 2500
     Notes Payable 2500
Date Account Title Debit Credit
March 05 Rent Expense 580
      Cash 580
Date Account Title Debit Credit
March 07 No Journal entry required
Date Account Title Debit Credit
March 12 Supplies 128
      Accounts Payable 128
Date Account Title Debit Credit
March 15 Cash 780
      Service Revenue 780
Date Account Title Debit Credit
March 19 Cash 680
      Deferred Revenue 680
Date Account Title Debit Credit
March 25 Deferred Revenue 680
      Service Revenue 680
Date Account Title Debit Credit
March 30 Utilities Expense 93
      Cash 93
Date Account Title Debit Credit
March 31 Dividends 140
      Cash 140

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