Question

M Ratajczyk opened the Big D Emporium on March 1, 2017. During March, the following transactions were completed:

March 1          Issued 10,000 shares of common stock for $25,000 cash.

1          Purchased used servers for $10,000, paying $6,000 cash and the balance on account.

3          Purchased office supplies for $1,500 on account.

5          Paid $2,400 cash on 1-year insurance policy effective March 1.

14        Billed customers $4,200 for data analysis services.

18        Paid $1,500 cash on amount owed on servers and $500 on amount owed on office supplies.

20        Paid $2,750 cash for employee salaries.

21        Collected $1,400 cash from customers billed on March 14.

28        Billed customers $6,200 for data analysis services.

31        Paid $350 for server maintenance which did not extend the life or function of the servers.

31        Declared and paid $900 cash dividend. ACCT 3201

Required:

Post to the ledger accounts.

Prepare a trial balance at March 31.

Journalize the following adjustments:

Earned but unbilled and uncollected revenue at March 31 was $800.

Depreciation on equipment for the month was $650.

One-twelfth of the insurance policy expired.

An inventory count shows $280 of office supplies on hand at March 31.

Incurred employee salaries but unpaid were $1,060.

Post adjusting entries to the general ledger.

Prepare an adjusted trial balance.

Prepare the income statement and a retained earnings statement for March and a classified balance sheet at March 31.

Journalize and post closing entries and complete the closing process.

Prepare a post-closing trial balance at March 31.

OFFICE SUPPLIES EXPENSE #520						Balance
Date	Item	Post Ref	Debit	Credit	Debit		Credit

DEPRECIATION EXPENSE #530						Balance
Date	Item	Post Ref	Debit	Credit	Debit		Credit

INSURANCE EXPENSE #540						Balance
Date	Item	Post Ref	Debit	Credit	Debit		Credit
Mar 31	Prepaid insurance	12	200		200

SALARIES EXPENSE #550

Balance

Date

Item

Post Ref

Debit

Credit

Debit

Credit

Mar 20

Cash

7

2750

2750

Ratajczyk’s Big D Emporium TRIAL BALANCE MARCH 31, 2017

BEFORE ADJUSTMENT

AFTER ADJUSTMENT

DEBIT

CREDIT

DEBIT

CREDIT

Cash

Accounts Receivable

Office Supplies

Prepaid Insurance

Equipment

Accumulated Depreciation: Equip

Accounts Payable

Salaries Payable

Common Stock

Retained Earnings

Dividends

Service Revenue

Maintenance Expense

Office Supplies Expense

Depreciation Expense

Insurance Expense

Salaries Expense

Ratajczyk’s Big D Emporium INCOME STATEMENT FOR THE MONTH ENDED MARCH 31, 2017

Ratajczyk’s Big D Emporium STATEMENT OF RETAINED EARNINGS FOR THE MONTH ENDED MARCH 31, 2017

Ratajczyk’s Big D Emporium BALANCE SHEET MARCH 31, 2017

Ratajczyk’s Big D Emporium POST-CLOSING TRIAL BALANCE MARCH 31, 2017
	DEBIT	CREDIT

Answer 1