instructions:

(a) Journalize the march transactions

(b) Post to Ledger accounts. Use the running balance form of ledger account.

(c) Prepare a trial balance at March 31st 19__

(d) Prepare a balance sheet at March 31st 19__

Based upon the answers from A through D and the information presented in the problem data, does it appear the business will have sufficient cash to pay liabilities as they come due to April? Explain.

Problem: After playing several seasons of professional football, George Harris had saved enough money to start a business, to be called Number One Auto Rental. The transactions during March while the new business was being organized are listed below: Mar. 1 George Harris invested $140,000 cash in the business by making a deposit in a bank account in the name of the new company. Mar. 3 The new company purchased land and a building at a cost of $120,000, of which $72,000 was regarded as applicable to the land and $48,000 to the building. The transaction involved a cash payment of $41,500 and the issuance of a note payable for $78,500. Mar. 5 Purchased 20 new automobiles at $8,600 each from Fleet Sales Company. Paid $40,000 cash, and agreed to pay $32,000 by March 31 and the remaining balance by April 15. The liability is viewed as an account payable. Mar. 7 Sold an automobile at cost to Harris's father-in-law, Howard Facey, who paid $2,400 in cash and agreed to pay the balance within 30 days. Mar. 8 One of the automobiles was found to be defective and was returned to Fleet Sales Company. The amount payable to this creditor was thereby reduced by $8,600. Mar. 20 Purchased office equipment at a cost of $4,000 cash. Mar. 31 Issued a check for $32,000 in partial payment of the liability to Fleet Sales Company, The account titles and account numbers used by the company are as follows: Cash Automobiles Accounts receivable Notes payable Land Accounts payable Buildings George Harris, capital Office equipment 10 11 16 17 20 22 31 32 50