Answer To: Accounting System ComponentAbrahamDue Date04/08 Develop a comprehensive accounting system that...
Nitish Lath answered on Apr 06 2021
March Transactions
March Transactions
Date Transaction Description
Mar 1 Began business by making a deposit in a company bank account of $80,000, in exchange for 8,000 shares of $10 par value common stock.
March 1 Paid the premium on a 1-year insurance policy, $2,400.
March 1 Paid the current month's store rent expense, $500.
March 3 Purchased auto parts from Andrew Company 200 nos. @29 each $5,800. Paid $1,000 down and the balance was placed on account. Payments will be $400.00 per month for 12 months. The first payment is due 4/1. Note: Use Accounts Payable for the Balance Due.
March 8 Purchased auto parts from Jackson Company on credit 36 no. @25 each $900 .
March 10 Paid telephone bill for March, $340.
March 11 Auto parts sold no. 33 @ 50 each, $1,650.
March 18 Made payment to Jackson Company, $400.
March 20 Sale of auto parts for the second third of March, 49 nos @50 each $2,450.
March 31 Cash sale of auto parts for the last third of March, 25 nos @50 each, $1,250.
March 31 Paid the current month's electice bill, $250.
March 31 Declared and paid cash dividend of $1,000.
1 - Journal Entries
General Journal
Date Account Title Debit Credit
March 1 Cash 80,000
Common Stock 80,000
(To record capital introduced)
March 1 Prepaid Insurance 2,400
Cash 2,400
(To record insurance premium paid)
March 1 Store Rent Expense 500
Cash 500
(To record store rent for one month)
March 3 Inventory 5,800
Cash 1,000
Accounts Payable 4,800
(To record purchase of auto parts)
March 8 Inventory 900
Accounts Payable 900
(To record purchase of auto parts)
March 10 Telephone Expense...