Nora Lighthouse, owner of Nora’s Cosmetics, completed the following business transactions during March 2012.
Mar. 1 Purchased $16,200 of inventory on credit.
4 Sold inventory that cost $9,000 to customers on account for $13,000.
5 Purchased equipment for $1,900 cash.
6 Collected $4,400 from customers as payments on their accounts.
10 Paid rent for March, $720
15 Paid utilities for March, $95.
17 Paid a $325 monthly salary to the part-time helper.
20 Collected $7,300 from customers as payments on their accounts.
25 Paid property taxes for March of $550.
26 Sold inventory that cost $7,000 to customers for $9,400 cash.
28 Paid $16,200 cash on account payable. (See March 1 entry.)
Required:
1. For each transaction, give the entry to record it in the company’s general journal. (Omit explanations.)
2. Set up T-accounts, and post the journal entries to their appropriate accounts.