4:48 s2.lite.msu.edu AT&T 91%. Course Contents PROBLEM #8 [FINANCIA ,-) Timer- Evaluate RAI Feedback-Print Info Transaction1 On March 1, the three classmates opened a checking account for The Wire at a local bank. They each deposited $25,000 in exchange for shares of stock. A few of their friends also purchased stock totaling $15,000 that was deposited in The Wire account. Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: ccount. Dollar amount: The company quickly acquired $42,000 in inventory, 70% of which was paid for in cash. The rest was acquired on open accounts that were payable after 30 days. Account: Dollar amount: Account: | Dollar amount: Transaction 3 A one-year store rental lease was signed on March 1 for $1,100 per month, and rent for the first 2 months was paid in advance. [Note: Record the complete entry for the March 1 transaction first and the complete adjusting entry on March 31 second.] Dollar amount: Account: Dollar amount: Account: Dollar amount: Account ( Transaction 4 The owners paid $2,000 for website advertising. They were able to get a good deal because one of the company's owners also owns stock in the website company. The owners also paid $6,500 for some advertising in local newspapers. [Note: Combine both transactions into one entry]. Dollar amount: Account: Account: Dollar amount: Account: Dollar amount: Account:Dollar amount: Account: Dollar amount: Transaction 5 Sales were $72,000. Cost of merchandise sold was 55% of its sales price. 70% of the sales were on open account. [Note: Record the complete entry for the sales first and the complete entry for the expenses second] Dollar amount: Account: Account:Dollar amount