Newton Manufacturing had the following transactions for the month of March. Newton uses the perpetual inventory system.

Mar $1$ Bought $$7,400$ worth of inventory on account.

Mar $2$ Sold products for $$6,620.$ The customer paid cash.

Mar $2$ COGS for the above sale total $$3,972.$

Mar $4$ Anna invested $$7,400$ into the business.

Mar $6$ Received $$3,600$ cash from a customer for products that will be delivered next month.

Mar $10$ Prepaid insurance for $$1,410$ for one year.

Mar $14$ Paid a suppler for supplies bought on account for $$530.$

Mar $19$ Sold products for $$5,190$ on account.

Mar $19$ COGS for the above sale total $$3,114.$

Mar $22$ Obtained a $$7,600$ loan from the bank.

Mar $24$ Collected the $$5,190$ owing from the sale on the $19$th$.$

Mar $25$ Purchased equipment with $$7,200$ cash.

Mar $26$ Paid salaries with $$1,160$ cash.

Mar $27$ Paid $$760$ towards the principle of the bank loan.

Mar $28$ Anna withdrew $$1,020$ cash for personal use.

Mar $28$ Accrued intersest on the bank loan for $$76$ which will be paid next month.

Prepare the journal entries for the above transactions.

Answer rating: 100% (QA)

Here are the journal entries for the transactions of Newton Manufacturing for the month of March 1 March 1 Bought inventory on account for 7400 Journal Entry Inventory Asset 7400 Accounts Payable Liab... View the full answer