instructions
options to pick from for account
1
2
3
4
5
6
Three former college classmates have decided to pool a variety of work experiences by opening a store near campus to sell wireless equipment to students. The business has been incorporated as University Wireless. Required: Several transactions occurred in March. Each is described separately in this folder. For each transaction, indicate the accounts that are affected, whether they increase or decrease, and the amount of the increase or decrease. YOU MUST FOLLOW THE INSTRUCTIONS BELOW. IF YOU DON'T, YOU MAY KNOW THE CORRECT ENTRY BUT THE COMPUTER WILL NOT RECOGNIZE IT AND YOU WILL NOT RECEIVE CREDIT. 1. 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. 2. When you record the dollar amounts, be sure to use a minus sign to indicate a decrease in the account. You don't need to use a plus sign to indicate an increase. 3. There are always more "Account" and "Amount" submission boxes available than are necessary. When you have indicated all the accounts that are affected by the transaction, you MUST select "Leave Blank" from the drop-down menu for EACH of the remaining "Account" submission boxes (you can leave the "Amount" boxes blank). 4. For transactions 3, 4, 5, and 8, you are given additional instructions. Read them carefully. 5. You get 5 tries for each transaction (8 tries for transaction #8). 6. The entries for each transaction are worth 2 points (4 points for transaction #8). Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank Transaction 3 A one-year store rental lease was signed on March 1 for $1,100 per month, and rent for the first 3 months was paid in advance. [Note: Record the complete entry for the March 1 transaction first and the complete adjusting entry on March 31 second.] Account: Prepaid Rent Dollar amount: 3,300 Account: Cash Dollar amount: -3,300 Account: Leave Blank Dollar amount: Account: Leave Blank Dollar amount: Account: | Leave Blank Dollar amount: Foil1=Leave%20Blan Submit Answer Some items were not submitted. Tries 0/5 Previous Tries Transaction 4 The owners paid $3,000 for website advertising. They were able to get a good deal because one of the company's owners also owns stock in the website company. The owners also paid $5,000 for some advertising in local newspapers. [Note: Combine both transactions into one entry]. Account: Cash Dollar amount: -8,000 Account: Retained Earnings Dollar amount: 8,000 Account: | Leave Blank Dollar amount: Foil3=Leave%20Blar Account: Leave Blank A Dollar amount: Foil1=Leave%20Blan Account: Leave Blank Dollar amount: Foil1=Leave%20Blan Submit Answer Incorrect. Tries 1/5 Previous Tries Transaction 5 Sales were $60,000. Cost of merchandise sold was 75% of sales. 35% of sales were for cash. [Note: Record the complete entry for the sales first and the complete entry for the expenses second] Account: Cash Dollar amount: 21,000 Account: Accounts Receivable Dollar amount: 39,000 Account: Retained Earnings Dollar amount: 60,000 Account: Inventory Dollar amount: -45,000 Account: Leave Blank Dollar amount: Account: | Leave Blank Dollar amount: Foil1=Leave%20Blan Submit Answer Some items were not submitted. Tries 0/5 Previous Tries Transaction 6 Wages and salaries in March were $10,300, of which $8,800 was actually paid to employees. Account: Wages Payable Dollar amount: 10,300 Account: Cash A Dollar amount: -8,800 Account: Wages Payable A Dollar amount: 1,500 Account: Leave Blank A Dollar amount: Foil1=Leave%20Blan Account: Leave Blank Dollar amount: Foil1=Leave%20Blan Submit Answer Incorrect. Tries 1/5 Previous Tries Transaction 7 Miscellaneous expenses were $1,000, all paid for with cash. Account: Cash Cash Dollar amount: -1000 Account: Leave Blank Dollar amount: Account: Leave Blank A Dollar amount: Foil3=Leave%20Blar Account: Leave Blank Dollar amount: Foil1=Leave%20Blan Submit Answer Some items were not submitted. Tries 0/5 Previous Tries Transaction 8 On March 1, fixtures and equipment were purchased for $4,500 with a downpayment of $2,000 and a $2,500 note, payable in one year. Interest of 4.5% per year was due when the note was repaid. The estimated life of the fixtures and equipment is 9 years with no expected salvage value. (Note: Record the complete entry for the March 1 equipment purchase first, the March 31 depreciation adjusting entry second, and the March 31 interest adjusting entry third. Also, round all answers to the nearest cent.] Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: Submit Answer Tries 0/8 Transaction 9 Cash dividends totaling $4,200 were paid to stockholders on March 31. Account: Retained Earnings A Dollar amount: -4200 Account: Cash Dollar amount: -4200 Account: Leave Blank Dollar amount: Foil3=Leave%20Blar Account: Leave Blank A Dollar amount: Foil1=Leave%20Blan Account: Leave Blank Dollar amount: Foil1=Leave%20Blan Submit Answer Incorrect. Tries 1/5 Previous Tries
