I have done a workup based on the question:
Date Account Title Debit Credit I I 3f1f2020 Cash 5 400,000.00 E {Common} Stock 5 400,000.00 E 3f1f2020 Cash 5 300,000.00 E Notes Payable S 300,000.00 E 3f1f2020 Pre-Paid Lease S 12,000.00 E Cash 5 12,000.00 E 3f1f2020 Fixed Asset {Equipment} 5 60,000.00 E Accounts Payable S 60,000.00 E 3f1f2020 Inventory Expense S 300,000.00 E Cash 5 300,000. 00 : 3f1f2020 Adverstising Expense S 10,000.00 E Cash 5 10,000. 00 E 3f7f2020 Cash 5 5,000.00 E Deferred Revenue 5 5,000.00 E 3/15f2020 Supplies Expense 5 3,000.00 E Cash 5 3,000. 00 : 3/20f2020 Cash 5 40,000.00 E Accounts Receivable S 20,000.00 E 03:35 5 20,000.00 : Revenue 5 60,000.00 E Inventory 5 20,000.00 E 3/27f2020 Utility Expense 5 1,000.00 E Cash 5 1,000. 00 E 3/31f2020 Salaries Expense 5 5,000.00 E I I Hallowell Guitar Company {HGC} is a retailer of boutique guitars. The following transactions took place during the rst month of operations in March 2020: 3f1f20 3f1/ZD 3j1f20 311120 3/1f20 3j1f20 3;?120 3f15f'20 ajzofzo 3f27f20 3f31j'20 3j31J20 The Company issued stock for $400,000 The Company borrowed $300,000 from the CAM bank with the following terms: 12% interest, paid 6/30 and 12/31. Lump sum repayment on 3/1/25 Paid $12,000 in advance for a 12 month lease of a retail shop. Purchased display equipment on account for $60,000. The equipment has a useful life of 5 years. Purchased $300,000 of guitar inventory. Paid $10,000 of advertising expense which will be used up in March. Received $5,000 deposit on a boutique guitar made with Brazilian rosewood that will be delivered to the customer in May. Purchased for cash $3,000 of various supplies. Sold $60,000 of guitars and received $40,000 in cash and billed customers for the remaining $20,000. The guitars cost HGC $20,000. The Company paid its utility bill of $1,000. The Company paid it employee's $5,000 salaries The Company paid dividends of $10,000 to its shareholders. You have been hired by HGC to record the March transactions and prepare a Trial Balance. The company wants you to submit your work in Excel using a separate tab for thejournal entries and trial balance. [Note HGC is not asking for an adjusted trial balance or nancial statements] Trial Balance as of March 31, 2020 Account Name Adjusted Balance Cash 5 745,000. 00 S 331,000.00 5 414,000.00 Common Stock 5 400,000.00 5 (400,000.00:- Notes Payable S 300,000.00 5 (300,000.00:- Accounts Pavable S 60,000.00 5 (60,000. 00} Accounts Receivable S 20,000.00 5 20,000.00 Prepaid Lease S 12,000.00 5 12,000.00 Fixed Asset 5 60,000. 00 5 60,000. 00 Inventory Expense S 300,000.00 5 20,000.00 5 280,000. 00 Deferred Revenue 5 5,000.00 5 (5,000. 00} Supplies Expense 5 3,000. 00 5 3,000. 00 COGS 5 20,000. 00 5 20,000. 00 Revenue 5 60,000. 00 S (60, 000. 00} Utility Expense 5 1,000.00 5 1,000. 00 Salaries Expense 5 5,000. 00 5 5,000. 00 Advertising Expense S 10,000.00 5 10,000. 00 Totals 5 1,176,000. 00 S 1,176,000.00 S
