**Account options are: Cash, Accounts Receivable, Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank.**

#2: Transaction 2 The company quickly acquired $41,000 in inventory, 30% of which was acquired on open accounts that were payable after 30 days. The rest was paid for in cash.

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#3 Transaction 3 A store was rented for $1,100 per month. A lease was signed for one year on March 1. Rent for the first 2 months was paid in advance. [Note: Record the March 1 transaction first and the March 31 adjustment second.]

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#4 Transaction 4 Website advertising was purchased for $2,000. They were able to get a good deal because one of the company's owners also owns stock in the website company. The company also paid $6,500 for some advertising in local newspapers. [Note: Combine both transactions into one entry].

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#5 Transaction 5 Sales were $62,000. Cost of merchandise sold was 70% of its sales price. 80% of the sales were on open account. [Note: Record the sales transaction first and the expense transaction second]

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#6 Transaction 6 Wages and salaries incurred in March amounted to $10,900, of which $4,000 was paid.

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#7 Transaction 7 Miscellaneous expenses paid for in cash were $1,800.

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#8 Transaction 8 On March 1, fixtures and equipment were purchased for $6,000 with a downpayment of $2,000 plus a $4,000 note payable in one year. Interest of 5.5% per year is due when the note is repaid. The estimated life of the fixtures and equipment is 10 years with no expected salvage value. Depreciation on the fixtures and equipment is computed on a straight-line basis. [Note: Record the March 1 equipment purchase first, then the March 31 depreciation adjusting entry, and finally the March 31 interest adjusting entry. Also, round all answers to the nearest cent.]

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