You have been hired as an accountant for the Manhattan Trading Corporation and you need to record the following transactions in the General Journal & General Ledger for March 2022. The company owns and operates a retail electronics & appliance store. The company started on March 1, 2022.

March

1 Issued 300,000 shares of common stock in exchange for $700,000 cash.

2 Purchased furniture and fixtures at a cost of $30,000. $5,000 was paid in cash and a 60-day note payable was signed for the balance owed.

3 Purchased inventory on account at a cost of $300,000. The company uses the perpetual inventory system.

4 Credit sales for the month totaled $350,000. The cost of goods sold was $135,000.

5 Paid $4,000 in rent on the store building for the month of March.

6 Paid $12,000 to an insurance company for fire and liability insurance for a one-year period beginning March 5.

7 Paid $100,000 on account for the merchandise purchased in March 3.

8 Collected $110,000 from customers on account.

9 The company needs to buy a new delivery van and has the following alternatives:

Toyota: Down Payment $ 5,000 and 60 monthly payments of $ 700 each

Ford: $ 0 down payment and 70 monthly payments of $ 850 each.

If the current interest rate is 12% compounded monthly, the company indeed purchased the best option.

12 The following plans are offered on the purchase of the 10 Desktop Computers: Plan A from Dell Inc.: 13,000 cash Plan B from HP: 24 monthly payments of $ 600

Plan C from Lenovo: $ 1,000 down and 20 monthly payments of $ 650. The interest rate is 12% compounded monthly.

The company purchased the best plan of all.

15 The company factors $200,000 of receivables with Chase on a with recourse basis, Chase charges 3% finance fee of receivables and retains 9% of receivable for adjustments. The company calculates that this recourse liability (bad debts) has a fair value of $18,000.

17 The company shipped goods costing $10,000 to Brooklyn Electronics on consignment. The sales agreement states that Brooklyn Electronics has 10 days to either sell the goods and pay our company $14,000 for them or to return the goods to our company.

20 Paid shareholders a cash dividend of $10,000.

22 The company collected $20,000 cash in advance from Queens Electronics for Merchandise to be delivered next week; the cost of the merchandise is $ 12,000.

28 Brooklyn Electronics did not return the merchandise on consignment.

29 Shipped and delivered the Merchandise to Queens Electronics.

31 Recorded depreciation expense of $2,000 for the month on the furniture, equipment & van.

31 Recorded the amount of prepaid insurance that expired for the month.

Required:

• Trial Balance (25 points)
• Income Statement for March 2022 (25 points)
• Balance Sheet for March 2022 (25 points)

Statement of Cash Flow for March 2022. (25 points)