Click here for latest Time Value Software Discount offers!
Mar 1Joan also invests her used vehicle into the business. She estimates that its fair value is $ 15,000. Joan estimates that the vehicle will be useful to the business for four years, at which time its residual value will be $ 3,000. It will only be used for business purposes.
Mar 1Joan signs a two year lease with Dungaree Property Management for the use of a space for her show room and warehouse storage. The show room represents half the leased area. The lease is effective March 1, 2009. Occupancy will begin immediately, and the amount paid for the lease is $ 48,000.
Mar 1Joan needs to acquire general liability insurance and protect her inventory. She purchases an insurance policy for the business from RPC Insurance Brokers for $ 6,000. The term of coverage is March 1, 2009 to February 28, 2010. She hires a security company to monitor the premises after-hours. They will invoice quarterly.
Mar 2Joan purchases a computer system and software for her business. The system costs $ 12,000, which Joan financed with a two year note payable. Interest on the note will be paid every three months at an annualized interest rate of 9%. Joan estimates that the computer equipment will be useful to the business for five years, at which time its residual value will be $ 0.
Mar 2Joan purchases used shelving and racks costing $ 5,000 from BGH Library Services. BGH offers credit terms of 1/15, net 30. Joan estimates this store equipment will be useful to the business for four years, at which time its residual value will be $ 1000.
Mar 2Joan purchases on account from Grand & Toy $ 500 of office supplies.
Mar 3Joan purchases on account from a manufacturer 20 desks with hutch bookcases at a cost of $ 1000 each, 20 oak credenzas at a cost of $ 400 each, and 40 art prints at $ 200 each. The manufacturer offers credit terms of 2/10, net 30 to its customers. Joan picks up the inventory from their warehouse in north east Calgary, and transports it to her show
room.
Mar 5Joan purchases on account from another wholesaler 100 sets of the latest anti-glare monitor covers and document stands. These items of inventory had a total cost of $ 10,000. The wholesaler offers credit terms of 3/5, net 30 to its customers. Joan picks up the inventory from the wholesaler’s warehouse in south east Calgary, and transports it to her show room.
Mar 10Joan records one journal entry for the sales from the first week of business. All of the sales were cash sales, except for a large sale on Mar 9 to Spaces Direct Co. on credit. Cash sales totalled $ 10,000. The list price of the sale to Spaces Direct Co. is $ 4,800, but they are given a 10% trade discount. The cost of the inventory sold was $ 12,000.
Mar 12Joan interviews and hires a salesperson, Cheech Marin, to provide in-store sales. Tim will begin working on Thursday Mar 12, and will work three days a week (Thursday through Saturday) at a salary of $ 150/day (assume no source deductions). Pay day will be every second Saturday beginning Saturday Mar 21, and will include all days worked up to and including the day of pay.
Mar 14Spaces Direct Co. returns some pieces from the purchase on Mar 9 (wrong colour). Joan issues a credit memo to them for the $ 1,400 price of the furniture (original cost of $ 800). They are then placed back on display for resale.
Mar 17Joan records one journal entry for the sales from the second week of business. All of the $ 18,000 sales were for cash. The cost of the inventory sold was $ 10,000.
Mar 19Payment is received from Spaces Direct Co. for the final amount owing for the Mar 9 credit sale.
Mar 22Payments are made to Grand & Toy and BGH for the Mar 2 purchases.
Mar 24Joan records one journal entry for the sales from the third week of business. All of the $ 4,200 sales were for cash. The cost of the inventory sold was $ 2,400.
Mar 21Cheech is paid his wages for his first two weeks of employment.
Mar 28Joan receives a payment of $ 2,000 from a local medical centre for wall hangings to be supplied in early May.
Mar 31Joan records one journal entry for the sales from the fourth week of business. All of the sales were cash sales, except for a large sale on Mar 29 to Spaces Direct Co. on credit. Cash sales totalled $ 5,600. The list price of the sale to Spaces Direct Co. is $ 2,800, but they are given a 10% trade discount. The cost of the inventory sold was $ 4,800.
Mar 31Joan withdraws $ 1,000 cash for her personal use
Additional March 31 adjusting entry information
1.A count of office supplies reveals that $ 410 of supplies remain in stock.
2.Joan estimates that the security service bill for March will be approximately $ 350.
Answer by lil.joy
can u make your sentence smaller so i can understand it?
