1. Record and post each of the March transactions. Replace all xx with your birth month. You may need to establish some new accounts.

March 1 The company purchases a $15,000 short term interest-bearing investment (3 month, 8%). Chapter 7

March 1 Sold a Mac for $3,000. This asset was included in the February 5 equipment purchase and had an original purchase price of $4,000, but once in use, the owners quickly realized, it was not adequate for their needs. (Hint: remember one month of depreciation was recorded in February; remember this as you determine the gain or loss.) Chapter 8

March 2 Purchased a PC for $3,000. Chapter 8

March 2 Issue 5-year, 9% bonds payable with a face value of $10,000. The bonds were issued at 104 and pay interest on June 30 and December 31. Chapter 10

March 5 Purchased land and building for $80,000 with a 10% cash payment a 30 year mortgage for the remainder, which will be paid in annual increments. The appraised value of the land is $18,000 and the building was appraised at $72,000. The mortgage interest rate is 4%. (Chapter 8 see page 360)

March 5 Paid salaries and wages payable ($2,900) and utilities ($600), recorded as accounts payable. See opening balances above.

March 6 Based on a customer survey, the company decided to sell motivational/self-help books and resources and purchased $6,500 of merchandise on account, with terms 2% 10, net 30. Freight costs were $100, this amount is included in the $6,500, but the discount terms do not apply to freight. If the company elects to pay within the discount period, they will reduce the inventory account by the discounted amount. Chapter 4, including appendix

March 10 The company returns $400 of the merchandise. Chapter 4

March 15 The company pays the vendor for the merchandise purchased on March 6. Chapter 4

March 15 Paid $3,2xx salaries and wages.

March 17 Purchases supplies on account for $1,6xx.

March 20 Issued 1,200 shares of $1 par value stock for $6,000. Chapter 11

March 31 Declares dividends of $.10 per share. (Hint: 22,000 shares were issued on February 1, they were issued at par value.) Chapter 11

Summary transactions for the month of March

March 31 Received $7,8xx from customers for services

March 31 Performed services for customers on account $5,6xx.

March 31 Sold merchandise that cost $3,600 for $8,000 plus $800 sales tax (which will be paid in September). 60% of the sales were for cash, the remainder on account. Chapters 4 and 9 (see page 404)

March 31 Collected cash from customers on account, $4,500.

March 31 Paid $800 of the accounts payable.

March 31 Paid the following cash expenses: (1) Advertising, $3,0xx; (2) Rent, $2,5xx.

Adjusting entries:

March 31 The controller realizes they need to establish an uncollectible account policy. Based on her research and after a lengthy discussion, the owners agree that an estimate of 10% of the accounts receivable balance is realistic. Chapter 7

March 31 Received a $7xx bill for utilities that will be paid in April (record payable in accounts payable).

March 31 Accrued employees salaries $3,2xx (to be paid on April 1).

March 31 Additional adjusting entries hints:

1. Refer to the adjusting entries from part 1, youll need to do the same for this month.
2. An inventory of supplies indicates there is a remaining balance of $850.
3. Remember to calculate interest expense for both the note and bond. Chapter 10
4. Calculate interest income for the Note Receivable. Chapter 7
5. In order to calculate income tax expense, you will need to calculate income.
6. Assuming you record each interest expense separately, you should have a total of 13 adjusting entries.