Transaction 1

On March 1, the three classmates opened a checking account for The Wire at a local bank. They each deposited $23,000 in exchange for shares of stock. A few of their friends also purchased stock for $12,000 that was deposited in The Wire account.[Note: Combine both transactions into one entry.]

Options for account: (Cash; Account Receivable; Inventory; prepaid rent; fixtures and equipment; accounts payable; interest payable; wages payable; notes payable; paid-in capital; retained earnings; leave blank)

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Transaction 2

The company quickly acquired $35,000 in inventory, 70% of which was paid for in cash. The rest was acquired on open accounts that were payable after 30 days.

Options for account: (Cash; Account Receivable; Inventory; prepaid rent; fixtures and equipment; accounts payable; interest payable; wages payable; notes payable; paid-in capital; retained earnings; leave blank)

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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 thecompleteentry for the March 1 transactionfirst, and thecompleteMarch 31 adjusting entrysecond.]

options for account: (Cash; Account Receivable; Inventory; prepaid rent; fixtures and equipment; accounts payable; interest payable; wages payable; notes payable; paid-in capital; retained earnings; leave blank)

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Transaction 4

The owners paid $2,500 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 $6,500 for some advertising in local newspapers.[Note: Combine both transactions into one entry.]

options for account: (Cash; Account Receivable; Inventory; prepaid rent; fixtures and equipment; accounts payable; interest payable; wages payable; notes payable; paid-in capital; retained earnings; leave blank)

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Transaction 5

Sales were $62,000. Cost of merchandise sold was 75% of sales. 80% of sales were on open account.[Note: Record thecompletesales entryfirst, and thecompleteexpense entrysecond.]

options for account: (Cash; Account Receivable; Inventory; prepaid rent; fixtures and equipment; accounts payable; interest payable; wages payable; notes payable; paid-in capital; retained earnings; leave blank)

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Transaction 6

Wages and salaries in March were $10,900, of which $8,200 was actually paid to employees.

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options for account: (Cash; Account Receivable; Inventory; prepaid rent; fixtures and equipment; accounts payable; interest payable; wages payable; notes payable; paid-in capital; retained earnings; leave blank)

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Transaction 7

Miscellaneous expenses were $1,000, all paid for with cash.

options for account: (Cash; Account Receivable; Inventory; prepaid rent; fixtures and equipment; accounts payable; interest payable; wages payable; notes payable; paid-in capital; retained earnings; leave blank)

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Transaction 8[4 points]

On March 1, fixtures and equipment were purchased for $4,500 with a downpayment of $1,500 and a $3,000 note, payable in one year. Interest of 6.5% per year was due when the note was repaid. The estimated life of the fixtures and equipment is 10 years with no expected salvage value.[Note: Record thecompleteMarch 1 entry for the equipment purchasefirst, thecompleteMarch 31 depreciation adjusting entrysecond, and thecompleteMarch 31 interest adjusting entrythird.]

options for account: (Cash; Account Receivable; Inventory; prepaid rent; fixtures and equipment; accounts payable; interest payable; wages payable; notes payable; paid-in capital; retained earnings; leave blank)

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Transaction 9

Cash dividends totaling $4,800 were paid to stockholders on March 31.

options for account: (Cash; Account Receivable; Inventory; prepaid rent; fixtures and equipment; accounts payable; interest payable; wages payable; notes payable; paid-in capital; retained earnings; leave blank)

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