Question

YOU MUST FOLLOW THE INSTRUCTIONS BELOW. IF YOU DON'T, YOU MAY KNOW THE CORRECT ENTRY BUT THE COMPUTER WILL NOT RECOGNIZE IT AND YOU WILL NOT RECEIVE CREDIT.

After each transaction description, there are several "Account" submission boxes and corresponding "Amount" submission boxes. To indicate the accounts that you think are affected, choose them from the drop-down menu. But you MUST select them in the order that they are listed in the menu. FOR EXAMPLE, if you think that Cash and Inventory are affected by a particular transaction, you must record the Cash impact first and the Inventory impact second because that is the order in which they are listed in the drop-down menu. If you record the Inventory impact first and the Cash impact second, even if they are the correct accounts and even if you have the correct dollar amounts, your answer will be considered incorrect.

When you record the dollar amounts, be sure to use a minus sign to indicate a decrease in the account. You don't need to use a plus sign to indicate an increase.

There are always more "Account" and "Amount" submission boxes available than are necessary. When you have indicated all the accounts that are affected by the transaction, you MUST select "Leave Blank" from the drop-down menu for EACH of the remaining "Account" submission boxes (you can leave the "Amount" boxes blank).

For transactions 3, 4, 5, and 8, you are given additional instructions. Read them carefully

Transaction 2
The company quickly acquired $44,000 in inventory, 30% of which was acquired on open accounts that were payable after 30 days. The rest was paid for in cash

Account:     Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank           

Dollar amount:   

Account:     Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank           

Dollar amount:   

Account:     Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank           

Dollar amount:   

Account:     Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank           

Dollar amount:   

Account:     Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank          

Dollar amount:

Transaction 3
A one-year store rental lease was signed on March 1 for $13,200 for the year, and rent for the first 2 months was paid in advance. [Note: Record the complete entry for the March 1 transaction first and the complete adjusting entry on March 31 second.]

Account:     Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank           

Dollar amount:   

Account:     Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank           

Dollar amount:   

Account:     Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank           

Dollar amount:   

Account:     Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank           

Dollar amount:   

Account:     Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank           

Dollar amount:

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 $6,500 for some advertising in local newspapers. [Note: Combine both transactions into one entry].

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Transaction 5

Sales were $72,000. Merchandise was sold for 2 times its purchase cost. 40% of the sales were for cash. [Note: Record the complete entry for the sales first and the complete entry for the expenses second]

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Transaction 5

Sales were $72,000. Merchandise was sold for 2 times its purchase cost. 40% of the sales were for cash. [Note: Record the complete entry for the sales first and the complete entry for the expenses second]

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Transaction 7

Miscellaneous expenses were $1,700, all paid for with cash.

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Transaction 8

On March 1, fixtures and equipment were purchased for $5,000 with a downpayment of $1,500 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 9 years with no expected salvage value. [Note: Record the complete entry for the March 1 equipment purchase first, the March 31 depreciation adjusting entry second, and the March 31 interest adjusting entry third. Also, round all answers to the nearest cent.]

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Transaction 9

Cash dividends totaling $4,600 were paid to stockholders on March 31.

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Account:   

Cash

Accounts Receivable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid-in Capital

Retained Earnings

Leave Blank

         Dollar amount:   

Answer 1