*(Prepare Journal Entries)

Date	Description
2015
1-Jan	Began business. Owners deposit $10,000 in exchange for 1,000 shares of $10.00 par value common stock.
10-Jan	Borrowed $25,000 from the bank. Signed a 2 year note with interest at 4.5%. Interest is payable June 30 and December 31 of each year.
12-Jan	Signed a lease agreement to rent office space for $975 per month, beginning Feb 1st. Nothing was paid today. (Question: do we owe rent for January?)
15-Jan	Purchased computer equipment for the office. Cost is $22,000. The equipment will be depreciated straight line over 5 years using month for the month of purchase. Wrote check for payment. Depreciation for Jan to March will be $1,062.50. (Record depreciation in the adjusting entries.)
22-Jan	Hired an outside technician to set up the equipment. Received a bill for $3,500, which is due on Feb 22. (accounts payable) (Capitalize if it is part of the asset cost. Research this.)
15-Feb	Received the following bills due March 15: telephone $275, and rent for $975.
20-Feb	Paid the technician's bill from Jan 22.
01-Mar	Purchased computers as inventory to sell to customers. Purchased 50 computers at a cost of $800 each. Invoice is payable in 30 days. Shipping costs are included in the price.
12-Mar	Sold 10 computers to George's Woolens, Inc. at a price of $900 each. Also performed installation services. Sent client an invoice for $13,800. (The invoice total includes the computer sales and the installation services there are two separate G/L income accounts. Also, perpetual inventory.)
15-Mar	Paid bills received Feb 15.
15-Mar	Received the following bills due April 15: telephone $345 and office supplies $760.
17-Mar	Completed a consulting project for Able Therapies, Inc. Sent client an invoice for $2,400.
20-Mar	Received a check for $5,000 from JAR Manufacturing as a deposit for an installation to be done in April.
22-Mar	Received payment for 50% of the invoice from Georges Woolens.
22-Mar	Paid three months of rent. Check amount is $2,925.
31-Mar	Completed a service project for Martha's Knitting Works. Sent client an invoice for $4,500. Used an outside consultant for this project, who will send an invoice to us for payment.
17-Mar	Received an invoice from an outside technician that we used for the George's Woolens screening done earlier. The invoice from this vendor was $1,800.
17-Mar	Paid outside technician $875 for work on the Able Therapies job that was completed earlier.
31-Mar	Have not yet received bills, but we know that the outside technician fees for Martha's will be $2,400.
28-Apr	Received a letter from Georges Woolens. They are having financial problems and are planning to file for protection under the bankruptcy laws. They are not likely to make any further payments.

* (Post the entries in your Journal to the General Ledger accounts. Be sure to post the debits and the credits. Check off each entry as you post it.)

* (On a separate sheet of paper, prepare a Trial Balance of the General Ledger as of March 31. Be sure that your ledger is in balance (i.e. debits = credits). Note that you will need to calculate the balance as of March 31 for each ledger account. The balances can be penciled in on the ledger pages.)

* (Prepare adjusting journal entries (in good form) for any adjustments as of March 31 that are needed to bring the books to their proper accrual basis amounts. (Remember depreciation expense, accrued expenses, prepaid expenses, unearned income, accounts receivable.)

* (Prepare another Trial Balance as of March 31. Label this one Adjusted Trial Balance.)

* (Prepare a Balance Sheet as of March 31 and an Income Statement and Statement of Retained Earnings for the three months ended March 31. Be sure to show current vs. long term assets and liabilities as appropriate. Also, prepare a schedule of outstanding Accounts Receivable.)