At the beginning of March, Brister Software Company had Cash of $12,000, Accounts Receivable of $18,000, Accounts

Question:

At the beginning of March, Brister Software Company had Cash of $12,000, Accounts Receivable of $18,000, Accounts Payable of $4,000, and G. Brister, Capital of $26,000. During the month of March, the following transactions occurred:

1. Purchased equipment for $23,000 from Digital Equipment. Paid $3,000 cash and signed a note payable for the balance.

2. Received $12,000 from customers for contracts billed in February.

3. Paid $3,000 for March rent of office space.

4. Paid $2,500 of the amounts owing to suppliers at the beginning of March.

5. Provided software services to Kwon Construction Company for $7,000 cash.

6. Paid BC Hydro $1,000 for energy used in March.

7. G. Brister withdrew $5,000 cash from the business.

8. Paid Digital Equipment $2,100 on account of the note payable issued for the equipment purchased in transaction 1. Of this, $100 was for interest expense.

9. Hired an employee to start working in April.

10. Incurred advertising expense on account for March, $1,500.

Instructions

Prepare a tabular analysis of the above transactions, as shown in Illustration 1-13 in the text. The first row contains the amounts the company had at the beginning of March.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...