Instructions: After each transaction description, there are several "Account" submission boxes and corresponding "Amount" submission boxes. To indicate the accounts that you think are affected, choose them from the drop-down menu. But you MUST select them in the order that they are listed in the menu. FOR EXAMPLE, if you think that Cash and Inventory are affected by a particular transaction, you must record the Cash impact first and the Inventory impact second because that is the order in which they are listed in the drop-down menu. If you record the Inventory impact first and the Cash impact second, even if they are the correct accounts and even if you have the correct dollar amounts, your answer will be considered incorrect. When you record the dollar amounts, be sure to use a minus sign to indicate a decrease in the account.

Account type options: Cash, AR, Inventory, Prepaid Rent, Fixtures and Equipment, AP, Interest payable, wages payable, notes payable, paid in capital, retained earnings and leave blank.

Problems (3, 4, 5, 8)

3. A store was rented for $12,000 for the year. A lease was signed for one year on March 1. Rent for the first 4 months was paid in advance. [Note: Record the March 1 transaction first and the March 31 adjustment second.]

4. Website advertising was purchased for $3,000. 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].

5. Sales were $70,000. Cost of merchandise sold was 75% of its sales price. 35% of the sales were for cash. [Note: Record the sales transaction first and the expense transaction second]

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 4.5% 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.]