Three former college classmates decided to open a store nearcampus to sell wireless equipment to students. They created apublic company and issued stock to interested investors.
Required: Several transactions occurred in March.Each is described separately in this folder. For each transaction,indicate the COMPANY accounts that are affected, whether theyincrease or decrease, and the amount of the increase ordecrease.
YOU MUST FOLLOW THE INSTRUCTIONS BELOW. IF YOU DON'T, YOU MAY KNOWTHE CORRECT ENTRY BUT THE COMPUTER WILL NOT RECOGNIZE IT AND YOUWILL NOT RECEIVE CREDIT.
After each transaction description, there are several "Account"submission boxes and corresponding "Amount" submission boxes. Toindicate the accounts that you think are affected, choose them fromthe drop-down menu. But you MUST select them in the order that theyare listed in the menu. FOR EXAMPLE, if you think that Cash andInventory are affected by a particular transaction, you must recordthe Cash impact first and the Inventory impact second because thatis the order that they are listed in the drop-down menu. If yourecord the Inventory impact first and the Cash impact second, evenif they are the correct accounts and even if you have the correctdollar amounts, your answer will be considered wrong.
When you record the dollar amounts, be sure to use a minus signto indicate a decrease in the account. You don't need to use a plussign to indicate an increase.
There are always more "Account" and "Amount" submission boxesavailable than are necessary. When you have indicated all theaccounts 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 additionalinstructions. Read them carefully.
Transaction 1
On March 1, the three classmates opened a checking account for thecompany at a local bank. They each deposited $20,000 in exchangefor shares of stock. A few of their friends also purchased stockfor $13,000 that was deposited in the company account.
Options for account: Cash, accounts receivable, inventory,prepaid rent, fixtures and equipment, accounts payable, interestpayable, wages payable, notes payable, paid in capital, retainedearnings, leave blank
Account: Dollar Amount:
Account: Dollar Amount:
Account: Dollar Amount:
Account: Dollar Amount
Account: Dollar Amount
Three former college classmates decided to open a store nearcampus to sell wireless equipment to students. They created apublic company and issued stock to interested investors.
Required: Several transactions occurred in March.Each is described separately in this folder. For each transaction,indicate the COMPANY accounts that are affected, whether theyincrease or decrease, and the amount of the increase ordecrease.
YOU MUST FOLLOW THE INSTRUCTIONS BELOW. IF YOU DON'T, YOU MAY KNOWTHE CORRECT ENTRY BUT THE COMPUTER WILL NOT RECOGNIZE IT AND YOUWILL NOT RECEIVE CREDIT.
After each transaction description, there are several "Account"submission boxes and corresponding "Amount" submission boxes. Toindicate the accounts that you think are affected, choose them fromthe drop-down menu. But you MUST select them in the order that theyare listed in the menu. FOR EXAMPLE, if you think that Cash andInventory are affected by a particular transaction, you must recordthe Cash impact first and the Inventory impact second because thatis the order that they are listed in the drop-down menu. If yourecord the Inventory impact first and the Cash impact second, evenif they are the correct accounts and even if you have the correctdollar amounts, your answer will be considered wrong.
When you record the dollar amounts, be sure to use a minus signto indicate a decrease in the account. You don't need to use a plussign to indicate an increase.
There are always more "Account" and "Amount" submission boxesavailable than are necessary. When you have indicated all theaccounts 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 additionalinstructions. Read them carefully.
Transaction 1
On March 1, the three classmates opened a checking account for thecompany at a local bank. They each deposited $20,000 in exchangefor shares of stock. A few of their friends also purchased stockfor $13,000 that was deposited in the company account.
Options for account: Cash, accounts receivable, inventory,prepaid rent, fixtures and equipment, accounts payable, interestpayable, wages payable, notes payable, paid in capital, retainedearnings, leave blank
Account: Dollar Amount:
Account: Dollar Amount:
Account: Dollar Amount:
Account: Dollar Amount
Account: Dollar Amount
