Transaction 1

On March 1, the three classmates opened a checking account for The Wire at a local bank. They each deposited $20,000 in exchange for shares of stock. A few of their friends also purchased stock for $10,000 that was deposited in The Wire account. [Note: Combine both transactions into one entry.]

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Transaction 2 The company quickly acquired $43,000 in inventory, 30% of which was acquired on open accounts that were payable after 30 days. The rest was paid for in cash.

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Transaction 3 A one-year store rental lease was signed on March 1 for $1,200 per month, and rent for the first 4 months was paid in advance. [Note: Record the complete entry for the March 1 transaction first, and the complete March 31 adjusting entry second.]

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Transaction 4 The owners paid $3,000 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.]

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Transaction 5 Sales were $62,000. Cost of merchandise sold was 55% of sales. 25% of sales were for cash. [Note: Record the complete sales entry first, and the complete expense entry second.]

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Transaction 6 Wages and salaries in March were $10,900, of which $8,600 was actually paid to employees.

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Transaction 7 Miscellaneous expenses were $1,400, all paid for with cash.

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Transaction 8 [4 points] On March 1, fixtures and equipment were purchased for $6,000 with a downpayment of $2,000 and a $4,000 note, payable in one year. Interest of 4% per year was due when the note was repaid. The estimated life of the fixtures and equipment is 8 years with no expected salvage value. [Note: Record the complete March 1 entry for the equipment purchase first, the complete March 31 depreciation adjusting entry second, and the complete March 31 interest adjusting entry third.]

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Account choose from (Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank )