Case Study1

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Unformatted text preview: h 1 Paid the current month's rent, $4,500. March 1 Paid the premium on a one-year insurance policy, $3,300. March 7 Purchased supplies on account from Parkview Company, $900. March 10 Paid employee salaries, $2,200. March 14 Purchased equipment from Hammond Company, $9,000. Paid $1,500 down and the balance was placed on account. Payments will be $375.00 per month for twenty months. The first payment is due 4/1. Note: Use Accounts Payable for the Balance Due. March 15 Received cash for landscaping revenue for the first half of March, $4,896. March 19 Made payment on account to Parkview Company, $450. March 31 Received cash for landscaping revenue for the last half of March, $5,304. March 31 Declared and paid cash dividend of $1,000. Prepare journal entries to record the March transactions in the General Journal below. General Journal Account Tittle Debit Credit 72,000 common stock 72,000 Date 1-Mar cash rent expense 4,500 cash Prepaid insurance cash 7-Mar supplies Account Payable 10-Mar Salaries Expense Cash 14-Mar Equipment 4,500 3,300 3,300 900 900 2,200 2,200 9,000 Cash Account Payable 1,500 7,500 15-Mar Cash service revenue 4,896 4,896 19-Mar Account Payable Cash 31-Mar cash 450 450 5,304 Service Revenue 31-Mar devident 5,304 1,000 cash 1,000 103,550 103,550 Note: Remember that Debits must equal Credits - All of your Journal Entries should balance. REQUIREMENT #2: Post the March journal entries to the following T-Accounts and compute ending balances. Date Cash (111) 1-Mar 15-Mar 10-Mar 14-Mar 19-Mar 31-Mar Balance 72,000 4,896 5,304 Date 4,500 3,300 2,200 1,500 450 1,000 15-Mar 31-Mar Closing Entry March31 Landscaping Revenue (411) 4,896 5,304 10,200 Balance 0 69,250 Date Prepaid Insurance (117) 1-Mar Date 3,300 1-Mar Closing Entry March31 Rent Expense (511) 4,500 4500 275 Balance Balance Date Supplies (119) 0 3,025 7-Mar Date 900 10-Mar Closing Entry March31 425 Balance Balance Salaries Expense (512) 2,200 2200 0 475 Date Equipment (144) 14-Mar Balance Date 31-Mar ClosingEntry March31 Balance 9,000 Insurance Expense (513) 275 Date Supplies Expense (514) 3/31/2013 Closing Entry March31 425 275 0 9,000 Accumulated Depreciation-Equipment (145) 31-Mar 150 Balance 150 Date Balance Accounts Payable (212) 7-Mar 14-Mar 450 Balance' 425 0 Date 31-Mar Closing Entry March31 Balance 150 Date 900 7500 Depreciation Expense (515) Income Tax Expense (516) 31-Mar Closing Entry March31 795 150 0 7,950 Date Income Tax Payable (213) 31-Mar 795 Balance 795 795 Balance Date 0 Common Stock (311) Date 1-Mar Balance 72,000 Date Retained Earnings (312) 31-Mar 855 Balance 855 Dividends (313) 31-Mar Closing Entry March31 Balance Income Summary (517) 72,000 1,000 1000 0 ClosingEntry31March ClosingEntry31March ClosingEntry31March Balance 10,200 8,345...
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This document was uploaded on 03/16/2014 for the course MBA acct504 at Keller Graduate School of Management.

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