Three former college classmates have decided to pool a variety of work experiences by opening a store near campus to sell wireless equipment to students. The business has been incorporated as University Wireless.

Required: Several transactions occurred in March. Each is described separately in this folder. For each transaction, indicate the accounts that are affected, whether they increase or decrease, and the amount of the increase or decrease.

Transaction 1

On March 1, the three classmates opened a checking account for The Wire at a local bank. They each deposited $22,000 in exchange for shares of stock. A few of their friends also purchased stock for $15,000 that was deposited in The Wire account.

Transaction 2

The company quickly acquired $37,000 in inventory, 40% of which was paid for in cash. The rest was acquired on open accounts that were payable after 30 days.

Transaction 3

A one-year store rental lease was signed on March 1 for $1,100 per month, and rent for the first 2 months was paid in advance. [Note: Record the complete entry for the March 1 transaction first and the complete adjusting entry on March 31 second.]

Transaction 4

The owners paid $3,500 for website advertising. They were able to get a good deal because one of the company's owners also owns stock in the website company. The owners also paid $6,000 for some advertising in local newspapers. [Note: Combine both transactions into one entry].

Transaction 5

Sales were $64,000. Cost of merchandise sold was 65% of sales. 65% of sales were on open account. [Note: Record the complete entry for the sales first and the complete entry for the expenses second]

Transaction Six

Wages and salaries in March were $11,200, of which $8,400 was actually paid to employees.

Transaction Seven

Miscellaneous expenses were $1,800, all paid for with cash.

Transaction Eight

On March 1, fixtures and equipment were purchased for $5,500 with a downpayment of $2,000 and a $3,500 note, payable in one year. Interest of 7% per year was due when the note was repaid. The estimated life of the fixtures and equipment is 9 years with no expected salvage value. [Note: Record the complete entry for the March 1 equipment purchase first, the March 31 depreciation adjusting entry second, and the March 31 interest adjusting entry third. Also, round all answers to the nearest cent.]

Transaction Nine

Cash dividends totaling $3,400 were paid to stockholders on March 31.

Below is a screenshot of all account options for the transactions.

Transaction 9 Cash dividends totaling $3,400 were paid to stockholders on March 31. Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: 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: Account: Dollar amount: Submit Ans