G ENERAL I NSTRUCTIONS FOR M ARCH Journalize the transactions listed below. Prep

Question

GENERAL INSTRUCTIONS FOR MARCH

Journalize the transactions listed below.

Prepare an unadjusted trial balance.

Prepare an adjusted trial balance.

Prepare a schedule of accounts receivable.

Prepare an income statement

Prepare a retained earnings statement

Prepare a balance sheet as of March 31, 20--.

TRANSACTIONS FOR MARCH

               General Entries                                   

Mar.    3   Issued Check No. 116 for $7,500 for the current month’s advertising.

6 Issued Check No. 117 for $2,000 for March office rent.

8 Received $11,500 from Ruth Garcia for services rendered to decorate her living room.

13 Performed decorating services on account for Nancy’s Accounting Firm for $8,600 (net 30).

Mar. 20 Performed decorating services on account for La Epoca Beauty Boutique for $18,000 (net 90).

26 Performed decorating services on account for Andrea’s Gourmet Food for $4,300 (net 30).

30 Issued Check No. 118 for $280 to pay the utilities bill for the month.

30 Issued Check No. 119 for $300 in payment of the telephone bill for the month.

30 Issued Check No. 120 for $240 for postage.

30 Issued Check No. 121 for $550 for business automobile expenses.

               Adjusting Entries                                       

Expired insurance for the period, $500.

Supplies on hand at the end of the month, $250.

Accrued salary expense (earned but not paid) owed to Sophia LeBron, $5,600. (Credit Accrued Salaries. Payroll taxes are not considered in this entry. Transactions in later months will show you how to journalize payroll tax deductions and expenses.)

Provision for uncollectible accounts estimated at 3.0% of March credit sales, $927.

Explanation / Answer

Journal Date Particulars Debit Credit 3-Mar Prepaid Advertising expense 7500             cash 7500 check issued for advertising in advance for month 6-Mar Prepaid Rent expense 2000              Cash 2000 check issued for office rent in advance for month 8-Mar Cash 11500           Service Revenue 11500 Amount received for services performed 13-Mar Accounts Receivables 8600           Service Revenue 8600 services performed on account 20-Mar Accounts Receivables 18000           Service Revenue 18000 services performed on account 26-Mar Accounts Receivables 4300           Service Revenue 4300 services performed on account 30-Mar Utility expense 280             Cash 280 check issued for Utilities bill 30-Mar Telephone expense 300             Cash 300 check issued for Telephome Bill 30-Mar Postage expense 240                 Cash 240 check issued for Postage 30-Mar Business automobile expenses 550                 Cash 550 check issued for automobile expense 30-Mar Insurance expense 500                       Prepaid Insurance 500 Insurance expired during the month 30-Mar Amount regarding supplies in hand at beginning and supplies purchased has not been given 30-Mar Salaries expense 5600          Accrued Salary 5600 Salary accrued but not paid 30-Mar Bad debt expense 927               Allowance for doubtfuls account 927 Provision made for uncollectibe accounts

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