Following is a series of transactions undertaken by Alx Browne to start her business, as a wedding planner, called the entity: Happy Ever After, Weddings and Social Events Co:

 

1. March 1- Ms. Browne sold some investments for $25,000, and invested only $20,000 of the proceeds in the new business - GBC Capital:         

 

2. Ms. Browne, paid $4,800 for the first six months' lease on an office from which to operate  her business; $720 for 1 year's business insurance

 

3. Ms. Browne paid $250, the first monthly lease payment, to lease a car for the first year of the business. [Use Auto Lease Expense] 

 

4. March 10 - Ms. Browne signed a contract with her first clients to plan their wedding, and accepted a down payment of $5,500. The wedding is six months later. 

 

5. March 12- she accepted $10,000 in cash from a company to plan a private event dinner on the 25^th   of March.           

 

6. March 14- she hired a firm of caterers to ^assist her in food preparation. The agreement required a ^deposit of $3,500 by Ms. Browne to School of Hospitality Caterers, for ser-vices to be performed at a  later date

 

7. March 15 - Ms. Browne purchased computer equipment at Staples for $5,000; office supplies for $1,200; office furniture for $2,500. She paid cash for all the purchases:                                                                                       

 

8.  March 18 - Ms. Browne and Jada Lee signed a contract for Ms. Lee to be her assistant, she will be paid $450.00 per week -

 

9. March 25 - Paid Jada Lee her weekly wages. -$450.00

 

10. March 25 - Ms Browne completed the work for which she was hired at the private event.     She also paid School of Hospitality Caterers the remaining sum of money, $1500, for their services.

 

 

 

Required: On the answer sheet provided

A. how to prepare the journal entries, and you may use the T-accounts provided on the spreadsheets (if you choose). Use the above dates.

 

B. how to prepare a trial balance on the Trial Balance form provided.           

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Q. 2 March 31- Using the information from Q.1 regarding the Happy Ever After, Weddings and Social Events Co. Required: Prepare adjusting entries for the month-end:

• One month of the office lease
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• One month of the insurance
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• Recognized $300 of office supplies used
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• Recognized that Ms Lee had worked for 6 days to the end of the month, but would be paid on the first day of the next month.