Transaction 1 On March 1, three former classmates invested a total of $39,000 in cash in exchange for 1,000 shares of stock

each. three former college classmates have decided to pool a variety of work experiences by opening a store near campus to sell wireless equipment to students. The business has been incorporated as University Wireless.Required: Several transactions occurred in March. Each is described separately in this folder. For each transaction, indicate the accounts that are affected, whether they increase or decrease, and the amount of the increase or decrease.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 that 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 wrong. 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, 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.

Choose one of the following: 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: Choose one of the following: 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: .

Choose one of the following: 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: Choose one of the following: 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: .

Choose one of the following: 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: .

To determine the two accounts that require analysis. consider the entries that are made when inventory is purchased on account and when suppliers are paid.PROBLEM #2 This problem requires that you do the same kind of analysis that was done in study problems 17-39 and 1741. but in this problem you have to analyze two accounts that are interrelated. ______________________________________________ ________ Balance Sheets for Perfect Packaging are shown below: Perfect Packaging Balance Sheet . Note that many of the numbers on the balance sheets below are irrelevant.

000 Cost of Goods Sold in 2010 was $350.000 $163.000 12/31/10 $100.000 $102. Required What amount of cash did Perfect Packaging pay to suppliers in 2010? Assume that all inventory purchases are on account. three former classmates invested a total of $39.000 $660.Assets Cash Accounts Receivable Inventory Fixtures and Equipment Liabilities Accounts Payable Notes Payble Stockholders' Equity Paid-in Capital Retained Earnings 12/31/09 $125.000 $97.000 $101.000 $60.000 $101.000 $126.000.000 $134.000 .000 $630.000 $570.000 $124.000 $127.000 $660. Soln to problem 1 transaction 1: On March 1.

000 Account: LEAVE BLANK Dollar amount: Transaction 6 Wages and salaries incurred in March amounted to $11.800 Account: Dollar amount: Account: Dollar amount: Transaction 7 Miscellaneous expenses paid for in cash were $1. Depreciation on the fixtures and equipment is .000 note payable in one year. ACCOUNT ACCOUNT 39. 70% of the sales were on open account.000 : PAID IN CAPITAL DOLLAR AMOUNT : : : : LEAVE LEAVE LEAVE LEAVE BLANK BLANK BLANK BLANK DOLLAR DOLLAR DOLLAR DOLLAR AMOUNT AMOUNT AMOUNT AMOUNT Transaction 2 The corporation quickly acquired $36.000. Interest of 4.000 Account: INVENTORY A/C Dollar amount:-37. Account: CASH Dollar amount:-4900 Account: WAGESPAYABLE Dollar amount: 6900 Account: RETAINED EARNINGS Dollar amount: .5% per year is due when the note is repaid. Account: CASH Dollar amount: -10800 Account: INVENTORY Dollar amount: 36000 Account: ACCOUNTS PAYABLE Dollar amount: 25. [Note: Record the sales transaction first and the expense transaction second] Account: CASH Dollar amount: 22.800 Account: RETAINED EARNINGS Dollar amount:74.000 with a downpayment of $2.200 Account: ACCOUNTS RECEIVABLE Dollar amount: 51. 30% of which was paid for in cash.000 ACCOUNT ACCOUNT ACCOUNT ACCOUNT : CASH DOLLAR AMOUNT 39.11. Account: CASH Dollar amount:-1200 Account: RETAINED EARNINGS Dollar amount:-1200 Account: LEAVE BLANK Dollar amount: Account: LEAVE BLANK Dollar amount: Account: LEAVE BLANK Dollar amount: Transaction 8 On March 1.200 Account: LEAVE BLANK Dollar amount: Account: LEAVE BLANK Dollar amount: Transaction 5 Sales were $74. of which $4.200.000 shares of stock each.800.in cash in exchange for 1. fixtures and equipment were purchased for $6. The estimated life of the fixtures and equipment is 12 years with no expected salvage value.000 Account: RETAINED EARNINGS Dollar amount:-37.900 was paid. The rest was acquired on open accounts that were payable after 30 days. Merchandise was sold for 2 times its purchase cost.000 plus a $4.000 in inventory.

000 suppliers LEDGER PARTICULARS TO BANK ( bf) AMT $ 3.000 were declared and paid to stockholders on March 31.000 = $3.74. $ 4.000 PURCHASES = 350.000 = $101.000 .48.000 AMT $101.73.74. then the March 31 depreciation adjusting entry. Also.] Account:cash Dollar amount:-2000 Account: equipment Dollar amount: 6. round all answers to the nearest cent.CLOSING STOCK $350.000 CASH PAID TO THE SUPPLIERS IS $ 3. [Note: Record the March 1 equipment purchase first.48.$101.000 $3.000 .000 +$124.computed on a straight-line basis.000 PARTICULARS BY BAL B/D BY PURCHASES TO BAL C/D $126. Account: cash Dollar amount: -5000 Account: retained earnings Dollar amount:-5000 Account: leave blank Dollar amount: Account: leave blank Dollar amount: Account: leave blank Dollar amount Solution to problem 2 COGS = OP STOCK + PURCHASES + DIRECT OVERHEADS .000 $ 4.000 + PURCHASES -$124.000 Account: equipment Dollar amount:-42 Account: retained earnings Dollar amount: -42 Account:interest payable Dollar amount:15 Account: retained earnings Dollar amount:-15 Account: leave blankDollar amount: Transaction 9 Cash dividends totalling $5. and finally the March 31 interest adjusting entry.000 Account: notes payable Dollar amount:4.000.73.

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