Part A $-$ Starting a New Month

Part A

Set up a basic accounting system for your flower shop. This includes creating accounts for your assets, liabilities, and equity $($general ledger$).$

Record the following transactions for the month of March:

March $1$

You invested $$10,000$ of your own cash into the business.

You purchased a new display fixture to display your arrangements for $$2,259.$

You obtained liability insurance for the entire year and paid $$1,320$ in cash.

March $2,$

You purchased $$4,000$ worth of inventory. You paid $$1,500$ in cash and the remaining $$2,500$ on account.

You purchased $$1000$ worth of supplies such as register tape, bags, toilet paper, and labels. You paid cash.

You hired two part$-$time employees to work $20$ hours per week each at a rate of $$16$ per hour.

March $3.$

You sold a purse for $$800$ to a customer for cash.

March $8$

You pay your staff the outstanding $$1,900.$

March $10,$

You sold $3$ leather jackets for $$2,100$ to a customer on account.

March $15$:

You collected $$500$ from a customer.

You make a cash sale for $$2,000.$

End of first pay period. Your employees worked $128$ hours in the first pay period of March. Paydays are the ${23}^{rd}$ and $8^{th}$ of each month.

March $20$

You collect $$3,000$ from customers who owe you.

You paid $$1,250$ to the wholesaler to reduce your outstanding balance.

March $22$:

You had a great day in sales $-$ $$3,000$ on account and $$2,000$ in cash.

March $23$

You paid your employees $128$ hours for their work in the first two weeks of March.

March $25$

You paid $$200$ for advertising supplies.

You received a $$500$ deposit for a special order to be ready on February $14.$

March $31$:

You sold $$3,500$ worth of inventory to a customer for cash.

You paid $$2,500$ to your supplier for the inventory you purchased on March $2^{nd}.$

You pay yourself $$2,200($owner$\text{'}$s Withdrawal$)$

Required for part $A$

Use the templates in the Assignment Package

Journalize the transactions.

Post the March transactions to the general ledger accounts. Make sure to add the beginning balances based on the December pos$-$closing trial balance.

Prepare the trial balance for March.

Part B $-$ Closing the Cycle

As of March $31,$ the following adjusting entry data are provided.

Prepaid Rent:Rent is paid every six months upfront, and rent is paid through the end of February.

Inventory:A physical count reveals $$4,500$ worth of inventory and $$575$ worth of supplies remain.

Advertising supplies: You used $$45$ worth of supplies.

Depreciation:The equipment excluding the new fixture has a $5-$year useful life and a $$2,200$ salvage value. The new fixture has a $7-$year useful life and a $$215$ salvage value.

Accrued Salaries:Employees earned $176$ hours for work done through March $31$st$,$ payable on April $9$th$.$

Prepaid insurance: One month's worth of insurance has expired.

A cell phone invoiceis received for $$75.$ The invoice is for services provided during March and is due on February $22.$

Required for part B:

Use the templates in the Assignment Package

Prepare adjusting journal entries for March.

Post adjusting entries to the ledger. Use the ledger from Part A$.$

Prepare the adjusted trial balance for March $31,2024.$

Prepare the Income statement, Statement of Owner's Equity, and Balance Sheet.

Prepare closing entries as of March $31,2024$

Prepare a post$-$closing trial balance.