DIRECTION: JOURNALIZE THE ENTRIES BELOW

DATE DESCRIPTION OF THE TRANSACTION

MARCH 1PAY OFF THE$60,000 NOTE PAYABLE OWED TO LITTLE BANK. THE CASH TO PAY OFF THE IS TAKEN OUT OF BIG BANK. ALSO PAY TO LITTLE BANK $450 FOR THE INTEREST OWED ON THE NOTE PAYABLE FOR FEBRUARY. THE $450.00 CASH IS ALSO TAKEN OUT OF BIG BANK.

MARCH 1TAKE $4,300 CASH OUT OF BIG BANK TO PAY FOR MARCH RENT

MARCH 2THE CUSTOMER THAT PURCHASED ON CREDIT ON FEBRUARY 15^TH PAYS $88,000 CASH TO PAY OFF THE AMOUNT DUE. THE CASH IS DEPOSITED INTO BIG BANK.

MARCH 10 SALE OF INVENTORY TO A CUSTOMER---SELLING PRICE $91,300--- COST OF THE INVENTORY SOLD $23,500. THE CUSTOMER PAYS CASH. THE CASH IS DEPOSITED INTO LITTLE BANK

MARCH 15^TH TAKE $26, 000 CASH OUT OF LITTLE BANK TO PAY EMPLOYEES OR WAGES THEY HAVE EARNED.

MARCH 16^TH PURCHASE $80, 750 OF ADDITIONAL INVENTORY. OVER PRICE JEANS WILL PAY THE MANUFACTURER 50% OF THE $80,750 IN 10 DAYS. OVERPRICED JEANS WILL PAY THE REMAINING 50% IN 30 DAYS

MARCH 17^TH SALE OF INVENTORY TO A CUSTOMER--- SELLING PRICE $112,000 ---COST OF INVENTORY SOLD $36,000.00. THE CUSTOMER WILL PAY FOR THE PURCHASE IN 30 DAYS.

MARCH 20^TH SALE OF INVENTORY TO A CUSTOMER--- SELLING PRICE $183,500---COST OF INVENTORY SOLD $46,000. THE CUSTOMER PAYS $25,000 CASH THAT IS DEPOSITED INTO LITTLE BANK. THE CUSTOMER WILL PAY THE REMAINING BALANCE IN 30 DAYS.

MATCH 22^ND PURCHASE INVENTORY FOR $42,000 CASH. THE CASH IS TAKEN OUT OF BIG BANK

MARCH 26^TH PAY THE MANUFACTURER THE 50% DUE ON MARCH 16^TH PURCHASE OF INVENTORY. THE CASH IS TAKEN OUT OF BIG BANK

MARCH 30^TH TAKE $36,000 CASH OUT OF LITTLE BANK TO PAY EMPLOYEES FOR WAGES THEY HAVE EARNED

ADDITIONAL INFORMATION

NOTE PAYABLE TO BIG BANK:

INTEREST DUE TO BIG BANK ON THE NOTE PAYAABLE FRO THE MONTH OF MARCH IS $610. AS OF MARCH 31, OVER PRICED JEANS OWES BIG BANK A TOTAL OF @1,210 FOR INTEREST ($600 FOR FEBRUARY + $610 FOR MARCH). INTEREST WILL BE PAID TO BIG BANK IN JUNE.