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Posted on Jul 31, 2024

1. CREATE JOURNAL ENTRIES FOR THE MARCH 2023 TRANSACTIONS BELOW FOR SUNFLOWER DESIGNS: a. On March 1, $350 of office supplies were purchased on credit;

1. CREATE JOURNAL ENTRIES FOR THE MARCH 2023 TRANSACTIONS BELOW FOR SUNFLOWER DESIGNS: a. On March 1, $350 of office supplies were purchased on credit; the terms of the invoice were net 30 . All of the supplies were used during the month of March (hint: expense immediately). b. On March 1, a computer laptop was purchased on credit totaling $2,750. The estimated useful life of the computer is three (3) years and is expected to have no salvage value. The invoice terms were 2/10, net 30 . c. On March 2, a 24-month liability insurance policy was purchased to cover Sunflower Designs. The full cost of the policy, $3,150, was paid in cash on the same date. d. On March 4, payroll checks were issued for the wages payable balance. e. On March 5, Sunflower Designs purchased $2,425 worth of inventory items for resale. These items were purchased on credit and the invoice term is 2/10, net 30 . f. On March 9, a check was issued to pay for the inventory purchased on March 5. 8. On March 10, Sunflower Designs paid for the office supplies purchased on credit on March 1. h. On March 12, Sunflower Designs completed and delivered an interior design layout to a customer for $12,400. The customer had paid for the services in advance in a previous month, and Sunflower Designs had appropriately recorded the deposit. i. On March 14, Sunflower Designs completed, delivered, and billed an interior design layout for $10,600 to a new customer. The terms of the invoice were 2/10, net 30 . j. On March 14, Sunflower Designs paid $1,550 in wages to a temporary employee in cash. On the same date, the company remitted payroll taxes of $475, previously accrued, to the appropriate government entities. k. On March 18, Sunflower Designs received a refund of $50 from their office supply vendor for items that were returned on the March 1 purchase. 1. On March 20, a customer paid the balance due for an interior design layout. The invoice for these services was sent to the customer on March 15,2022 . The contract price was $13,200. m. On March 24, Sunflower Designs sold a side table from inventory for $1000. The inventory cost for this item was $525. The customer paid cash for this purchase. n. On March 26, $1,725 worth of inventory was returned to supplier because of defects. The inventory had been purchased on account in February and had not been paid for. o. On March 31, the customer delivered a check for one-half of the interior design invoice delivered on March 14. 2. CREATE THE MARCH 31, 2023 UNADIUSTED TRIAL BALANCE 3. CREATE ADJUSTING JOURNAL ENTRIES FOR MARCH 31, 2023: p. Record the depreciation for the laptop purchased on March 1. q. Record the March 2023 depreciation for all computers \& software owned before the March 1 purchase. These items are being depreciated over 3 years using the straight-line method with no salvage value. r. Record the March 2023 depreciation for the furniture \& fixtures. These items are being depreciated over 7 years using the straight-line method with no salvage value. 5. Record the adjusting entry for March's rent. Sunflower Designs paid $6,000 in advance for 6 months' rent on December 1,2021 . All previous months' adjusting entries were made as required. t. Record the adjusting entry for the consumption of prepaid insurance for the month of March. The preexisting policy has 36 -months remaining as of March 1 , and recall that the new policy provides coverage for 24 -months. The previous months' adjusting entries were made as required. u. Record the amount due to employees for time worked during March, but not paid. The amount earned by the employees was $3,600. The payroll taxes should be accrued at 20% of the wages and the entry should be made, payment for these taxes will occur in April. 1. CREATE JOURNAL ENTRIES FOR THE MARCH 2023 TRANSACTIONS BELOW FOR SUNFLOWER DESIGNS: a. On March 1, $350 of office supplies were purchased on credit; the terms of the invoice were net 30 . All of the supplies were used during the month of March (hint: expense immediately). b. On March 1, a computer laptop was purchased on credit totaling $2,750. The estimated useful life of the computer is three (3) years and is expected to have no salvage value. The invoice terms were 2/10, net 30 . c. On March 2, a 24-month liability insurance policy was purchased to cover Sunflower Designs. The full cost of the policy, $3,150, was paid in cash on the same date. d. On March 4, payroll checks were issued for the wages payable balance. e. On March 5, Sunflower Designs purchased $2,425 worth of inventory items for resale. These items were purchased on credit and the invoice term is 2/10, net 30 . f. On March 9, a check was issued to pay for the inventory purchased on March 5. 8. On March 10, Sunflower Designs paid for the office supplies purchased on credit on March 1. h. On March 12, Sunflower Designs completed and delivered an interior design layout to a customer for $12,400. The customer had paid for the services in advance in a previous month, and Sunflower Designs had appropriately recorded the deposit. i. On March 14, Sunflower Designs completed, delivered, and billed an interior design layout for $10,600 to a new customer. The terms of the invoice were 2/10, net 30 . j. On March 14, Sunflower Designs paid $1,550 in wages to a temporary employee in cash. On the same date, the company remitted payroll taxes of $475, previously accrued, to the appropriate government entities. k. On March 18, Sunflower Designs received a refund of $50 from their office supply vendor for items that were returned on the March 1 purchase. 1. On March 20, a customer paid the balance due for an interior design layout. The invoice for these services was sent to the customer on March 15,2022 . The contract price was $13,200. m. On March 24, Sunflower Designs sold a side table from inventory for $1000. The inventory cost for this item was $525. The customer paid cash for this purchase. n. On March 26, $1,725 worth of inventory was returned to supplier because of defects. The inventory had been purchased on account in February and had not been paid for. o. On March 31, the customer delivered a check for one-half of the interior design invoice delivered on March 14. 2. CREATE THE MARCH 31, 2023 UNADIUSTED TRIAL BALANCE 3. CREATE ADJUSTING JOURNAL ENTRIES FOR MARCH 31, 2023: p. Record the depreciation for the laptop purchased on March 1. q. Record the March 2023 depreciation for all computers \& software owned before the March 1 purchase. These items are being depreciated over 3 years using the straight-line method with no salvage value. r. Record the March 2023 depreciation for the furniture \& fixtures. These items are being depreciated over 7 years using the straight-line method with no salvage value. 5. Record the adjusting entry for March's rent. Sunflower Designs paid $6,000 in advance for 6 months' rent on December 1,2021 . All previous months' adjusting entries were made as required. t. Record the adjusting entry for the consumption of prepaid insurance for the month of March. The preexisting policy has 36 -months remaining as of March 1 , and recall that the new policy provides coverage for 24 -months. The previous months' adjusting entries were made as required. u. Record the amount due to employees for time worked during March, but not paid. The amount earned by the employees was $3,600. The payroll taxes should be accrued at 20% of the wages and the entry should be made, payment for these taxes will occur in April