Ranjeet Gill is a wedding planner who is one of the best known in her area; she has a high presence at wedding shows and works closely with a wedding dress boutique. On January 1, 2020, Ranjeet started her business called Everything Wedding Planning. The following activities occurred during March, the third month of operations:

Required

1. Prepare journal entries to record the July transactions.

2. Set up the following general ledger accounts using T-accounts, entering the balances brought forward from February 29, 2020: Cash (101) $6,200; Supplies (126) $1,050; Equipment (161) $8,200; Accounts Payable (201) $1,700; Unearned Wedding Planning Revenue (233) $10,000; Ranjeet Gill, Capital (301) $3,200; Ranjeet Gill, Withdrawals (302) $13,200; Wedding Planning Revenue (401) $46,600; Wages Expense (623) $26,650; and Rent Expense (640) $6,200.

3. Post the entries to the T-accounts; calculate the ending balance in each account.

4. Prepare a trial balance at March 31, 2020.

5. Use the trial balance to prepare an income statement and statement of changes in equity for the three months ended March 31, 2020, as well as a balance sheet at March 31, 2020.

Transcribed Image Text:

Purchased supplies for organizing files on credit for $200. Collected $4,400 in advance for a wedding in May. Collected the final payment of $2,200 for the Singh wedding happening this weekend. Paid $3,200 to rent the hall for the Singh wedding. Paid $600 for supplies purchased on account last month. Ranjeet withdrew cash of $450 to do some personal shopping on the weekend. Paid her assistant wages of $1,500. 31 March 1 15 20 Purchased new punch bowl equipment on credit for $400.