Question

Below are the transactions for Ute Sewing Shop for March, the first month of operations.

March 1 Issue common stock in exchange for cash of $1,700.
March 3 Purchase sewing equipment by signing a note with the local bank, $1,400.
March 5 Pay rent of $470 for March.
March 7
Martha, a customer, places an order for alterations to several dresses. Ute estimates that the alterations will cost Martha $670. Martha is not required to pay for the alterations until the work is complete.

March 12
Purchase sewing supplies for $117 on account. This material will be used to provide services to customers.

March 15 Ute delivers altered dresses to Martha and receives $670.
March 19
Ute agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Ute receives $570 from Bob and promises the suits to be completed by March 25.

March 25 Ute delivers 10 altered business suits to Bob.
March 30 Pay utilities of $82 for the current period.
March 31 Pay dividends of $85 to stockholder

1. Record each transaction

2. Post each transaction to the appropriate T-accounts

3. Prepare a trial balance as of March 31.

Answer 1

Step-by-step explanation:

March 1

Cash 1700

Share Capital 1700

To record the issuance of shares

March 3

Equipment 1400

Cash 1400

To record the purchase of equipment on cash

March 5

Rent Expense 470

Cash 470

To record the rent expense

March 7

No entry neither cash nor serves are provided.

March 12

Purchase 117

Cash 117

To record the purchases

March 15

Cash 670

Income 670

To record the services Income.

March 19

Advance 570

Payable 570

To record the advance cash receipt for services not yet provided thus advance is our liability.

March 25

Payable 228 570/25*10

Income 228

To record the services income against advance given.

March 30

Utilities Expense 82

Cash 82

To record the monthly utilities expense

March 31

Dividend Pay 85

Cash 85

To record the payment of dividend.

2)

Share Capital Account

Opening = 0

Cash 1700

Closing=1700

Cash Account

Opening = 0

share capital 1700 Equipment 1400

Rent 470

Purchase 117

Income 670

Adv. Pay 570

Utilities 82

Dividend 85

Closing balance- 786

Equipment

Opening = 0

Cash 1400

Closing-1400

Rent Expense

Opening = 0

Cash 470

Closing-470

Purchase Expense

Opening = 0

Cash 117

Closing-117

Income Account

Opening = 0

Cash 670

Payable 228

Closing- 898

Payable Account

Opening = 0

Cash 570

Income 282

Closing-342

Utilities Expense

Opening = 0

Cash 82

Closing-82

Dividend

Opening = 0

Cash 85

Closing-85

3) Trail Balance

Head Of Account Debit Credir

Cash 786

Share Capital 1700

Equipment 1400

Rent Expense 470

Purchases 117

Income 898

Payable 342

Utilities 82

Dividend 85

Total 2940 2940