Item$2$

$5$points

eBook

Print

References

Check my workCheck My Work button is now enabled

Item $2$

Below are the transactions for Backstitch Sewing Shop for March, the first month of operations.

March $1$Issue common stock in exchange for cash of $$2,500.$March $3$Purchase sewing equipment by signing a note with the local bank, $$2,200.$March $5$Pay rent of $$550$ for March.March $7$Martha, a customer, places an order for alterations to several dresses. Backstitch estimates that the alterations will cost Martha $$750.$ Martha is not required to pay for the alterations until the work is complete.March $12$Purchase sewing supplies for $$125$ on account. This material will be used to provide services to customers.March $15$Backstitch delivers altered dresses to Martha and receives $$750.$March $19$Backstitch agrees to alter $10$ business suits for Bob, who has lost a significant amount of weight recently. Backstitch receives $$650$ from Bob and promises the suits to be completed by March $25.$March $25$Backstitch delivers $10$ altered business suits to Bob.March $30$Pay utilities of $$90$ for the current period.March $31$Pay dividends of $$125$ to stockholders.

Prepare the journal entries for transactions.

Note: If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.

Journal entry worksheet

Issue common stock in exchange for cash of $\backslash (\backslash$$ $2,500\backslash ).$

Note: Enter debits before credits.