Question: Below are the transactions for Ute Sewing Shop for March

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 $3,000.
March 3 Purchase sewing equipment by signing a note with the local bank, $2,700.
March 5 Pay rent of $600 for March.
March 7 Martha, a customer, places an order for alterations to several dresses.
Ute estimates that the alterations will cost Martha $800. Martha is not required to pay for the alterations until the work is complete.
March 12 Purchase sewing supplies for $130 on account. This material will be used to provide services to customers.
March 15 Ute delivers altered dresses to Martha and receives $800.
March 19 Ute agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Ute receives $700 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 $95 for the current period.
March 31 Pay dividends of $150 to stockholders.

1. Record each transaction.
2. Post each transaction to the appropriate T-accounts.
3. Calculate the balance of each account at March 31.
4. Prepare a trial balance as of March 31.
Ute uses the following accounts: Cash, Supplies, Equipment, Accounts Payable, Unearned Revenue, Notes Payable, Common Stock, Dividends, Service Revenue, Rent Expense, and Utilities Expense.

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  • CreatedJuly 15, 2014
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