Question

Maria Company started its operations on March 1, 2018. The following transactions took place during the first month of operations:

March 1: Maria invests $1,840,000 cash to start the business.

March 4: Purchased furniture for $240,000, paying $100,000 in cash and sign a note for

               the remaining balance.

March 9: Purchased supplies for $12,200 on credit.

March 15: Paid $18,000 cash for March rent.

March 18: Paid $4,200 cash for office supplies purchased on March 9.

March 21: Services billed to customers amount to $104,000.

March 24: Received utility bills for $22,000 for the month of March.

March 27: Paid $64,000 cash for salaries.

March 30: Received $80,000 cash from customers in payment for services billed on

                 March 21.

March 31: Maria withdrew $15,000 from the business for personal use.

Required: ( Note the answers should be computerized )

1- Using a table, show the effect of the above transactions on the accounting equation.

2- Prepare Journal entries to record the above transactions.

3- Post to the appropriate ledger accounts.

4- Prepare the trial balance on March 31 2018.

5. Prepare the financial statements of Rose Company on March 31 2018.

Answer 1