READ THE FOLLOWING CAREFULLY! There will be 9 transactions.

Three former college classmates decided to open a store near campus to sell wireless equipment to students. They created a public company and issued stock to interested investors. Required: Several transactions occurred in March. Each is described separately in this folder. For each transaction, indicate the COMPANY accounts that are affected, whether they increase or decrease, and the amount of the increase or decrease. YOU MUST FOLLOW DIRECTIONS 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 that 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 wrong.

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, 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 complete entry.

6.) The entries for transaction #8 is worth 4 points. The entries for each of the other transactions are worth 2 point.

Transaction #1 On March 1, the three classmates opened a checking account for the company at a local bank. They each deposited $24,000 in exchange for shares of stock. A few of their friends also purchased stock for $15,000 that was deposited in the company account.

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and EquipmenT, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capita,l Retained Earnings, Leave Blank Dollar amount:

Transaction #2 The company quickly acquired $38,000 in inventory, 70% of which was acquired on open accounts that were payable after 30 days. The rest was paid for in cash.

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and EquipmenT, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capita,l Retained Earnings, Leave Blank Dollar amount:

Transaction #3 A store was rented for $1,000 per month. 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.]

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and EquipmenT, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capita,l Retained Earnings, Leave Blank Dollar amount:

Transaction #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 $5,000 for some advertising in local newspapers. [Note: Combine both transactions into one entry].

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and EquipmenT, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capita,l Retained Earnings, Leave Blank Dollar amount:

Transaction #5 Sales were $64,000. Cost of merchandise sold was 60% of its sales price. 20% of the sales were for cash. [Note: Record the sales transaction first and the expense transaction second]

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and EquipmenT, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and EquipmenT, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capita,l Retained Earnings, Leave Blank Dollar amount:

Transaction #6 Wages and salaries incurred in March amounted to $10,600, of which $5,200 was paid.

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and EquipmenT, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capita,l Retained Earnings, Leave Blank Dollar amount:

Transaction #7 Miscellaneous expenses paid for in cash were $1,400.

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and EquipmenT, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

Transaction #8 On March 1, fixtures and equipment were purchased for $4,500 with a downpayment of $1,500 plus a $3,000 note payable in one year. Interest of 6.5% per year is due when the note is repaid. The estimated life of the fixtures and equipment is 9 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.]

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and EquipmenT, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capita,l Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capita,l Retained Earnings, Leave Blank Dollar amount:

Transaction #9 Cash dividends totalling $3,000 were declared and paid to stockholders on March 31.

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capita,l Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank Dollar amount:

- Type of Account? Cash Accounts, Receivable Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capita,l Retained Earnings, Leave Blank Dollar amount: