At the beginning of March, Brister Software Company had Cash of $12,000, Accounts Receivable of $18,000, Accounts
Question:
At the beginning of March, Brister Software Company had Cash of $12,000, Accounts Receivable of $18,000, Accounts Payable of $4,000, and G. Brister, Capital of $26,000. During the month of March, the following transactions occurred:
1. Purchased equipment for $23,000 from Digital Equipment. Paid $3,000 cash and signed a note payable for the balance.
2. Received $12,000 from customers for contracts billed in February.
4. Paid $2,500 of the amounts owing to suppliers at the beginning of March.
5. Provided software services to Brie Construction Company for $7,000 cash.
6. Paid BC Hydro $1,000 for energy used in March.
7. G. Brister withdrew $5,000 cash from the business.
8. Paid Digital Equipment $2,100 on account of the note payable issued for the equipment purchased in transaction 1. Of this, $100 was for interest expense.
9. Hired an employee to start working in April.
10. Incurred advertising expense on account for March, $1,500.
Instructions
Prepare a tabular analysis of the above transactions, as shown in Illustration 1-10 in the text. The first row contains the amounts the company had at the beginning of March.
Step by Step Answer:
Accounting Principles Part 1
ISBN: 978-1118306789
6th Canadian edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow