Monmath Corp. began operations in March of year 3. The following transactions occur during March. a. On
Question:
Monmath Corp. began operations in March of year 3.
The following transactions occur during March.
a. On March 1 of year 3, Monty contributes $20,000 for 10,000 shares of $1 par value.
b. On March 1 of year 3, Monmath borrows $10,000 from the bank at an interest rate of 12%. The loan plus interest is due in twelve months.
C. Monmath purchases $15,000 of inventory on account
d. Monmath sells $10,000 of inventory for $12,000 on account.
e. Monmath collects all his accounts receivable.
F. Monmath pays for half of the inventory purchased in (c) above.
g. Repairs were made to the building for $300 in cash (record this as a repair expense)
H. The firm paid $250 for one-year subscriptions to ski magazines. None of the magazines have been received to date.
i. On March 31, the company purchases a machine for $10,000, freight of $675, and installation costs of $1,500.
Prepare:
1. Journal entries as of March 31 of year 3.
2. Prepare the balance sheet as of March 31.
Accounting Tools for Business Decision Making
ISBN: 978-1118128169
5th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso