March 2021 Transactions Date Description of the Transaction March 1 Owners of OPJ invested an additional $55,000 cash into the business. The cash is put into Big Bank. (As an example of how to joumalize and post a transaction - this transaction has already been entered into the General Journal and posted to the General Ledger March 1 Pay off the $60,000 Note Payable owed to Little Bank. The cash to pay off the note is taken out of Big Bank. Also pay to Little Bank $450 for interest owed on the Note Payable for February The $450 cash is also taken out of Big Bank. March 1. Take $4,800 cash out of Big Bank to pay for March's rent. March 2 The customer that?urchased on credit on February 15 pays $88,000 cash to pay off the amount due. The cash is deposited into Big Bank. March 10 Sale of inventory to a customer - selling price $72,500 - cost of the inventory sold $23,000. The customer pays cash. The cash is deposited into Little Bank. March 15 Take $26,000 cash out of Little Bank to pay employees for wages they have earned. March 16 Purchase $77.500 of additional inventory. OPJ will pay the manufacturer 50% of the 577,500 in 10 days. OPJ will pay the remaining 50% in 30 days. March 17 Sale of inventory to a customer - selling price $115,000 - cost of the inventory sold $33,000. The customer will pay for the purchase in 30 days. March 20 Sale of inventory to a customer-selling price $165,500 - cost of the inventory sold $42,750. The customer pays $35,500 cash that is deposited into Little Bank. The customer will pay the remaining amount in 30 days. March 22 Purchase inventory for $42,000 cash. The cash is taken out of Big Bank. March 26 Pay the manufacturer the 50% due on the March 16th purchase of inventory. The cash is taken out of Big Bank. March 30 Take $28,500 cash out of Little Bank to pay employees for wages they have earned. Additional Information Note Payable Big Bank: Interest due to Big Bank on the Note Payable for the month of March is $990. As of March 31 OPJ owes Big Bank a total of $1,590 for interest ($600 for February + $990 for March). Interest will be paid to Big Bank in June. rd Font Alignment 2 Num! X Account # 200 Accounts Payable Journal Page # Debit Credit 2021 Month-Day 3-1 Beginning Balance Balance 0.00 0.00 C Account # 210 Note Payable - Big Bank Journal Page # Debit Credit Balance 2021 Month-Day 3-1 Beginning Balance 3-1 65,000.00 65,000.00 Cr 5,000.00 Cr 60,000.00 Account # 215 Note Payable - Little Bank Journal Page # Debit Credit Balance 2021 Month-Day 3-1 Beginning Balance 3-1 60,000.00 60,000.00 C Account # 220 Interest Payable - Big Bank Journal Page # Debit Credit 2021 Month-Day 3-1 Beginning Balance Balance 600.00 600.00 CM + Account # 225 Interest Payable - Little Bank Journal Page # Debit Credit 2021 Month-Day 3-1 Beginning Balance Balance 450.00 450.00 Cr Account # 300 Common Stock Journal Page # Debit Credit 2021 Month-Day 3-1 Balance Beginning Balance 75,000.00 55,000.00 75,000.00 C 130,000.00 C 3-1 1 Account # 305 Retained Earnings 2021 Month-Day 3-1 Journal Page # Debit Credit Balance Beginning Balance 155,950.00 155,950.00 Cr
