M Ratajczyk opened the Big D Emporium on March 1 2017 During

M Ratajczyk opened the Big D Emporium on March 1, 2017. During March, the following transactions were completed: March 1 Issued 10,000 shares of common stock for $25,000 cash 1 Purchased used servers for $10,000, paying $6,000 cash and the balance on account. 3 Purchased office supplies for $1,500 on account. 5 Paid $2,400 cash on 1-year insurance policy effective March 1 14 Billed customers $4,200 for data analysis services. 18 Paid $1,500 cash on amount owed on servers and $500 on amount owed on office supplies. 20 Paid $2,750 cash for employee salaries 21 Collected $1,400 cash from customers billed on March 14. 28 Billed customers $6,200 for data analysis services. 31 Paid $350 for server maintenance which did not extend the life or function of the servers. 31 Declared and paid $900 cash dividend. Required: 1. 2. 3. 4. Journalize the March transactions. Post to the ledger accounts. Prepare a trial balance at March 31. Journalize the following adjustments: a. Earned but unbilled and uncollected revemue at March 31 was $800 b. Depreciation on equipment for the month was $650 c. One-twelfth of the insurance policy expired d. An inventory count shows $280 of office supplies on hand at March 31 e. Incurred employee salaries but unpaid were $1,060. 5. Post adjusting entries to the general ledger. 6. Prepare an adjusted trial balance. 7. Prepare the income statement and a retained earnings statement for March and a classified balance sheet at March 31 8. Journalize and post closing entries and complete the closing process 9. Prepare a post-closing trial balance at March 31.

Solution

As per policy, only four parts of a question is allowed to answer, so answering 1 - 4 :

1) Journal Entries :

Credit $

2) T-Accounts - Ledger Accounts :

3) Trial Balance as on Mar 31, 2017 :

4) Adjustment Journal Entries :

Date	Accounts Titles	Debit $	Credit $
Mar 1 2017	Cash	25000
	Common Stock		25000
1	Equipment	10000
	Cash		6000
	Accounts Payable		4000
	(purchase of used server)
3	Off. Supplies	1500
	AP		1500
5	Prepaid Ins	2400
	Cash		2400
14	AR	4200
	Service Revenue		4200
18	AP	2000
	Cash		2000
20	Salary Expense	2250
	Cash		2250
21	Cash	1400
	AR		1400
28	AR	6200
	Service Revenue		6200
31	Maintenance Exp.	350
	Cash		350
31	Dividend Exp.	900
	Cash		900