Perpetual Inventory Method: Record each transaction accordingly.
During the month of March 2017, the following transactions occur.
4 Buy five deluxe mixers on account from Kzinski Supply Co. for $2,875, terms n/30.
5 Teaches class at YMCA for which a $60 deposit was received in February
6 Pay $100 freight on the March 4 purchase (check #301).
7 Return one of the mixers to Kzinski because it was damaged during shipping. Kzinski issues a credit for the cost of the mixer plus $20 for the cost of freight that was paid on March 6 for one mixer.
8 Collects the amount due from the neighborhood community center that was accrued at the end of February.
10 Teaches the last two classes for the Stoughton schools
12 Sell three deluxe mixers on account to Samantha French for $3,450, FOB destination, terms n/30. The mixers cost $595 each (including freight).
13 Pay cell phone bill previously accrued in the February adjusting journal entries. (check #302)
14 Pay $75 of delivery charges for the three mixers that were sold on February 12. (check #303)
14 Buy four deluxe mixers on account from Kzinski Supply Co. for $2,300, terms n/30.
17 Concerned that there is not enough cash available to pay for all of the mixers purchased, issues additional common stock for $1,000.
18 Pays $80 freight on the March 14 purchase. (check #304)
19 Teaches a class for $150 and collects cash payment
20 Sells two deluxe mixers for $2,300 cash.
28 Issues a check to the assistant. The assistant worked 20 hours in March and is also paid for amounts owing at February 30, 2010. The assistant earns $8 an hour. (check #305)
28 Collects amounts due from customers in the March 12 transaction.
31 Pay Kzinski all amounts due. (check #306)
31 Cash dividends of $750 are paid. (check #307)
Adjusting entries:
As of March 31st, the following adjusting entry data are available.
1. A count of baking supplies reveals that $300 were used in March.
2. Another monthâs worth of depreciation needs to be recorded on the baking equipment bought in January. (Recall that the baking equipment has a useful life of 5 years or 60 months.)
3. One monthâs worth of amortization (write-off) needs to be recorded on the website. (Recall that the
website has a useful life of 2 years or 24 months.)
4. An additional monthâs worth of interest on the loan needs to be accrued. (The interest rate is 9%.)
5. One monthâs worth of insurance has expired.
6. The cell phone bill, $75 is received. The bill is for services provided in March and is due April 15. (Recall that the cell phone is used only for business purposes.)
7. An inventory count of mixers at the end of March reveals three mixers remaining at a cost of $595 each.
Perpetual Inventory Method: Record each transaction accordingly.
During the month of March 2017, the following transactions occur.
4 Buy five deluxe mixers on account from Kzinski Supply Co. for $2,875, terms n/30.
5 Teaches class at YMCA for which a $60 deposit was received in February
6 Pay $100 freight on the March 4 purchase (check #301).
7 Return one of the mixers to Kzinski because it was damaged during shipping. Kzinski issues a credit for the cost of the mixer plus $20 for the cost of freight that was paid on March 6 for one mixer.
8 Collects the amount due from the neighborhood community center that was accrued at the end of February.
10 Teaches the last two classes for the Stoughton schools
12 Sell three deluxe mixers on account to Samantha French for $3,450, FOB destination, terms n/30. The mixers cost $595 each (including freight).
13 Pay cell phone bill previously accrued in the February adjusting journal entries. (check #302)
14 Pay $75 of delivery charges for the three mixers that were sold on February 12. (check #303)
14 Buy four deluxe mixers on account from Kzinski Supply Co. for $2,300, terms n/30.
17 Concerned that there is not enough cash available to pay for all of the mixers purchased, issues additional common stock for $1,000.
18 Pays $80 freight on the March 14 purchase. (check #304)
19 Teaches a class for $150 and collects cash payment
20 Sells two deluxe mixers for $2,300 cash.
28 Issues a check to the assistant. The assistant worked 20 hours in March and is also paid for amounts owing at February 30, 2010. The assistant earns $8 an hour. (check #305)
28 Collects amounts due from customers in the March 12 transaction.
31 Pay Kzinski all amounts due. (check #306)
31 Cash dividends of $750 are paid. (check #307)
Adjusting entries:
As of March 31st, the following adjusting entry data are available.
1. A count of baking supplies reveals that $300 were used in March.
2. Another monthâs worth of depreciation needs to be recorded on the baking equipment bought in January. (Recall that the baking equipment has a useful life of 5 years or 60 months.)
3. One monthâs worth of amortization (write-off) needs to be recorded on the website. (Recall that the
website has a useful life of 2 years or 24 months.)
4. An additional monthâs worth of interest on the loan needs to be accrued. (The interest rate is 9%.)
5. One monthâs worth of insurance has expired.
6. The cell phone bill, $75 is received. The bill is for services provided in March and is due April 15. (Recall that the cell phone is used only for business purposes.)
7. An inventory count of mixers at the end of March reveals three mixers remaining at a cost of $595 each.
