1. Record Journal Entries: Top of the World, Inc. provides rock climbing sessions to customers. The following is a list of transactions that occurred in October 2020.

   1. 10/1/20: Obtained a loan from the bank by signing a note for $13,000.

   2. 10/5/20: Provided rock climbing sessions to customers worth $3,010. Of the $3,010 in sessions provided, $210 worth was paid for by customers using cash. The remaining $2,800 was purchased by customers on account.

   3. 10/7/20: Purchased supplies on account for $1,280.

   4. 10/16/20: Received $825 in cash from customers as payment on their accounts receivable.

   5. 10/27/20: Paid $1,300 in cash for October 2020 rent.

   6. 10/30/20: Paid creditors from transaction c) $690 in cash.

Record all of the above transactions using journal entries. Assume Top of the World uses the following accounts: Cash, Accounts Receivable (A/R), Supplies, Notes Payable (N/P), Accounts Payable (A/P), Service Revenue, and Rent Expense. You must show proper journal entry formatting, and also include the date and a brief description of the entry to earn full credit.

2. Post transactions to T-Accounts: T.A.R.D.I.S. Co. is a merchandiser who sells science fiction themed merchandise to customers. The beginning balance of all accounts listed in their general ledger as of March 1^st is: Cash: $7,220; A/R: $6,890; Inventory: $2,045; Notes Payable (N/P): $5,000; Accounts Payable (A/P): $2,440; Retained Earnings: $8,715; Common Stock: $0. Assume Sales Revenue and COGS each have a beginning balance of $0 as of March 1^st. The following transactions were then recorded in the firms general journal for March:

Date				Debit:	Credit:
2-Mar	Cash			$ 25,000
		Notes Payable (N/P)			$ 25,000
	To record loan from bank
3-Mar	Inventory			$ 9,160
		Accounts Payable (A/P)			$ 9,160
	To record purchase of inventory on account from suppliers
5-Mar	Cash			$ 1,300
	Accounts Receivable (A/R)			$ 6,700
		Sales Revenue			$ 8,000
	To record revenue from sale of merchandise inventory
5-Mar	Cost of Goods Sold (COGS)			$ 4,370
		Inventory			$ 4,370
	To record cost of merchandise sold; reduction in inventory
13-Mar	Accounts Payable (A/P)			$ 2,690
		Cash			$ 2,690
	To record payment to creditors
20-Mar	Cash			$ 3,450
		Accounts Receivable			$ 3,450
	To record receipt of cash from customers on account

1. Prepare T-accounts for the following accounts used by TARDIS: Cash, Accounts Receivable (A/R), Inventory, Accounts Payable (A/P), Notes Payable (N/P), Common Stock, Retained Earnings, Sales Revenue, and Cost of Goods Sold (COGS) and record the beginning balance as of March 1^st as given above (HINT: make sure the sum of your Asset T-account balances = the sum of your Liability + SHE T-account balances at the beginning of the period!). NOTE about formatting: I find it easiest to set up T-accounts using excel, but you are welcome to handwrite them and upload a picture in Compass, or use a word document if that is easier/more convenient for you.

2. Post (i.e. transfer) the information in the journal entries listed above to the proper T-accounts.

3. Update each T-account and calculate the ending balance of each T-account as of March 31^st. (HINT: Make sure the sum of your Asset T-account balances = the sum of your Liability + SHE T-account balances at the end of the period!).