Taylor opened a drone service business called T-Krew, on March 01, 2020. T-Krew provides aerial consulting...

 

 
 
 
 

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Taylor opened a drone service business called T-Krew, on March 01, 2020. T-Krew provides aerial consulting services to agricultural producers with large production acreages. The following transactions occurred in the month of March March 1 T-Krew sold 60,000 shares of capital stock to Taylor for $60,000 cash. March 2 March 4 March 15 March 15 March 18 March 25 March 30 March 30 March 30 Drone and video recording equipment purchased for $220,000. Paid $40,000 in cash and will pay the remaining balance in 60 days. Paid Kanye's Video Editing $2,500 to edit drone footage. Sent invoice to customers for $8,500 for drone video and photographs taken during the first half of March. Salaries of $6,000 were paid to employees for the first half of March. Paid Ed's Drone Services $2,000 for maintenance and repair services on the company's drones Customers paid $5,000 of the amounts billed on March 15. Sent invoice to customers for $17,000 for aerial photographs taken during the second half of the month. Paid employees $6,000 in salaries for the second half of the month. Received a $2,500 bill from Enterprise Car Rentals for rental services in March. The payment is due May 31th. March 30 T-Krew intends to pay dividends of $3,000 to shareholders on July 15. Instructions: a) Record each transaction (total of 11) in the General Journal for T-Krew. b) Post each transaction to the appropriate General Ledger T-Accounts. c) Construct a Trial Balance dated March 31, 2020. d) Using the Trial Balance you prepared in part c, calculate total assets, total liabilities, and owners' equity. (Hint: Owners' Equity - Total Assets - Total Liabilities) e) Based on information in (c), did March, 2020 appear to be a profitable month? (Hint: Net Profit - Revenue - Expenses) Current Yr. March 1 2 K 15 15 18 25 30 30 30 30 General Journal $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ b) General Ledger Date Current Yr. March 1 2 4 15 18 25 30 Date Current Yr. March 15 25 30 Date Current Yr. March 2 Date Current Yr. March 2 Date Current Yr. March 30 Date Current Yr. March 30 Date Current Yr. March Date Current Yr. March 1 30 Cash Debit Accounts Receivable Debit Drone and Recording Equipment Debit Notes Payable Debit Accounts Payable Debit Dividends Payable Debit Dividends Capital Stock Debit Debit Credit Credit Credit Credit HO Credit Credit Credit Credit M Balance Balance Balance Balance Balance Balance Balance Balance H Date Current Yr. March Date Current Yr. March March March March 18 Date Current Yr. Date Current Yr. 15 30 Date Current Yr 30 15 30 4 Aerial Video and Photography Revenue Debit Maintenance Expense Debit Car rental Expense Debit Salaries Expense Debit Video Editing Expense Debit Credit Credit Credit Credit Credit Balance Balance Balance Balance Balance I c) Trial balance T-Krew Trial Balance d) Using the Trial Balance you prepared in part c, calculate total assets, total liabilities, and owners equity. (Hint: Owners' Equity - Total Assets - Total Liabilities) e) Based on information in (c), did March 2020 appear to be a profitable month? (Hint: Net Profit= Revenue - Expenses) Taylor opened a drone service business called T-Krew, on March 01, 2020. T-Krew provides aerial consulting services to agricultural producers with large production acreages. The following transactions occurred in the month of March March 1 T-Krew sold 60,000 shares of capital stock to Taylor for $60,000 cash. March 2 March 4 March 15 March 15 March 18 March 25 March 30 March 30 March 30 Drone and video recording equipment purchased for $220,000. Paid $40,000 in cash and will pay the remaining balance in 60 days. Paid Kanye's Video Editing $2,500 to edit drone footage. Sent invoice to customers for $8,500 for drone video and photographs taken during the first half of March. Salaries of $6,000 were paid to employees for the first half of March. Paid Ed's Drone Services $2,000 for maintenance and repair services on the company's drones Customers paid $5,000 of the amounts billed on March 15. Sent invoice to customers for $17,000 for aerial photographs taken during the second half of the month. Paid employees $6,000 in salaries for the second half of the month. Received a $2,500 bill from Enterprise Car Rentals for rental services in March. The payment is due May 31th. March 30 T-Krew intends to pay dividends of $3,000 to shareholders on July 15. Instructions: a) Record each transaction (total of 11) in the General Journal for T-Krew. b) Post each transaction to the appropriate General Ledger T-Accounts. c) Construct a Trial Balance dated March 31, 2020. d) Using the Trial Balance you prepared in part c, calculate total assets, total liabilities, and owners' equity. (Hint: Owners' Equity - Total Assets - Total Liabilities) e) Based on information in (c), did March, 2020 appear to be a profitable month? (Hint: Net Profit - Revenue - Expenses) Current Yr. March 1 2 K 15 15 18 25 30 30 30 30 General Journal $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ b) General Ledger Date Current Yr. March 1 2 4 15 18 25 30 Date Current Yr. March 15 25 30 Date Current Yr. March 2 Date Current Yr. March 2 Date Current Yr. March 30 Date Current Yr. March 30 Date Current Yr. March Date Current Yr. March 1 30 Cash Debit Accounts Receivable Debit Drone and Recording Equipment Debit Notes Payable Debit Accounts Payable Debit Dividends Payable Debit Dividends Capital Stock Debit Debit Credit Credit Credit Credit HO Credit Credit Credit Credit M Balance Balance Balance Balance Balance Balance Balance Balance H Date Current Yr. March Date Current Yr. March March March March 18 Date Current Yr. Date Current Yr. 15 30 Date Current Yr 30 15 30 4 Aerial Video and Photography Revenue Debit Maintenance Expense Debit Car rental Expense Debit Salaries Expense Debit Video Editing Expense Debit Credit Credit Credit Credit Credit Balance Balance Balance Balance Balance I c) Trial balance T-Krew Trial Balance d) Using the Trial Balance you prepared in part c, calculate total assets, total liabilities, and owners equity. (Hint: Owners' Equity - Total Assets - Total Liabilities) e) Based on information in (c), did March 2020 appear to be a profitable month? (Hint: Net Profit= Revenue - Expenses)

Answer rating: 100% (QA)

Current Year Accounts Debit Credit March 1 60000 N Ge... View the full answer