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 describedseparately in this folder. For each transaction, indicate theCOMPANY accounts that are affected, whether they increase ordecrease, and the amount of the increase or decrease. YOU MUSTFOLLOW THE INSTRUCTIONS BELOW. IF YOU DON'T, YOU MAY KNOW THECORRECT ENTRY BUT THE COMPUTER WILL NOT RECOGNIZE IT AND YOU WILLNOT RECEIVE CREDIT. After each transaction description, there areseveral "Account" submission boxes and corresponding "Amount"submission boxes. To indicate the accounts that you think areaffected, choose them from the drop-down menu. But you MUST selectthem in the order that they are listed in the menu. FOR EXAMPLE, ifyou think that Cash and Inventory are affected by a particulartransaction, you must record the Cash impact first and theInventory impact second because that is the order that they arelisted in the drop-down menu. If you record the Inventory impactfirst and the Cash impact second, even if they are the correctaccounts and even if you have the correct dollar amounts, youranswer will be considered wrong. When you record the dollaramounts, be sure to use a minus sign to indicate a decrease in theaccount. You don't need to use a plus sign 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). Fortransactions 3, 4, 5, and 8, you are given additional instructions.Read them carefully. You get 5 tries for each complete entry. Theentries for transaction #8 is worth 4 points. The entries for eachof the other transactions are worth 2 point.
Transaction 8
On March 1, fixtures and equipment were purchased for $5,000 with adownpayment of $2,000 plus a $3,000 note payable in one year.Interest of 4% per year is due when the note is repaid. Theestimated life of the fixtures and equipment is 8 years with noexpected salvage value. Depreciation on the fixtures and equipmentis computed on a straight-line basis. [Note:Record the March 1 equipment purchase first, then the March 31depreciation adjusting entry, and finally the March 31 interestadjusting entry. Also, round allanswers to the nearest cent.]
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 describedseparately in this folder. For each transaction, indicate theCOMPANY accounts that are affected, whether they increase ordecrease, and the amount of the increase or decrease. YOU MUSTFOLLOW THE INSTRUCTIONS BELOW. IF YOU DON'T, YOU MAY KNOW THECORRECT ENTRY BUT THE COMPUTER WILL NOT RECOGNIZE IT AND YOU WILLNOT RECEIVE CREDIT. After each transaction description, there areseveral "Account" submission boxes and corresponding "Amount"submission boxes. To indicate the accounts that you think areaffected, choose them from the drop-down menu. But you MUST selectthem in the order that they are listed in the menu. FOR EXAMPLE, ifyou think that Cash and Inventory are affected by a particulartransaction, you must record the Cash impact first and theInventory impact second because that is the order that they arelisted in the drop-down menu. If you record the Inventory impactfirst and the Cash impact second, even if they are the correctaccounts and even if you have the correct dollar amounts, youranswer will be considered wrong. When you record the dollaramounts, be sure to use a minus sign to indicate a decrease in theaccount. You don't need to use a plus sign 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). Fortransactions 3, 4, 5, and 8, you are given additional instructions.Read them carefully. You get 5 tries for each complete entry. Theentries for transaction #8 is worth 4 points. The entries for eachof the other transactions are worth 2 point.
Transaction 8
On March 1, fixtures and equipment were purchased for $5,000 with adownpayment of $2,000 plus a $3,000 note payable in one year.Interest of 4% per year is due when the note is repaid. Theestimated life of the fixtures and equipment is 8 years with noexpected salvage value. Depreciation on the fixtures and equipmentis computed on a straight-line basis. [Note:Record the March 1 equipment purchase first, then the March 31depreciation adjusting entry, and finally the March 31 interestadjusting entry. Also, round allanswers to the nearest cent.]
Account: Dollar Amount:
Account: Dollar Amount:
Account: Dollar Amount:
Account: Dollar Amount
Account: Dollar Amount
