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. YOU MUST FOLLOW THE INSTRUCTIONS BELOW. IF YOU DO NOT, YOU MAY KNOW THE CORRECT ENTRY BUT THE COMPUTER WILL NOT RECOGNIZE IT AND YOU WILL NOT RECEIVE CREDIT. 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 entry first and the Inventory entry second because that is the order that they are listed in the drop-down menu. If you record the Inventory entry first and the Cash entry second, even if they are the correct accounts and even if you have the correct dollar amounts, your answer will be considered wrong. When you record the dollar amounts, be sure to use a minus sign to indicate a decrease in the account. You do not need to use a plus sign to indicate an increase. Finally, 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). For transactions 3, 4, 5, and 8, you are given additional instructions. Pay careful attention to them! Transaction 8 is worth 4 points. The other transactions are worth 2 points each. Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank Transaction 2 The company quickly acquired $41,000 in inventory, 70% of which was acquired on open accounts that were payable after 30 days. The rest was paid for in cash. Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: Submit Answer Tries 0/5 Transaction 3 A one-year store rental lease was signed on March 1 for $1,000 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 March 31 adjusting entry second. ] Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: Account: Dollar amount: Submit Answer Tries 0/5
