Chapter 2 Business Transactions

The following information is for the M & N Fashion Consulting, Inc. M & N Fashion provides consulting services to clients. M & N Fashion has existing balances from Feb. 28, 20Y5.

Record the transactions below on the worksheet provided for the month of March 20Y5.

Transaction 1:March 1Borrowed $10,00 from the bank by issuing a note payable.

Transaction 2:March 2Purchased equipment for $6,000 on account.

Transaction 3:March 5Received $6,500 cash from the issuance to capital stock to

its sole stockholder, Sally, who is the owner of firm.

Transaction 4:March 7Received $4,500 cash from customers for services

previously provided that was on account.

Transaction 5:March 9Purchased supplies $3,500 cash.

Transaction 6:March 13Paid $4,000 for the equipment that was purchased on

March 2^nd.

Transaction 7:March 15Performed services for a customer on account, $3,000.

Transaction 8:March 20Paid wages for $1,200.

Transaction 9:March 28Paid $850 to the bank on the loan, of which $200 was

interest and the rest was a repayment of the loan.

Transaction 10:March 30Paid dividends of $700 to its shareholder, Sally.

(the right column is Statement of Cash Flows)

M & N Fashion Consulting Inc. Integrated Financial Statements Assets Liabilities + Shareholders' Equity Date Cash Accounts Prepaid Supplies Equipment Accum. Accounts Notes Unearned Capital Retained Income Stat Receivable Insurance Depr. - Payable Stock Statement of C Equip. Payable Revenue Earnings Flo March 1 $7,500 $6,000 $4,800 $5,000 $2,000 $5,000 $6,300 $6,300 Balances Mar 31 BAL