On March 1, 2020, PT. Surya Fajar (a distributor company) has the following account balances:   During March, the company concluded the following transactions: 

March. 1 Purchased $20,000 worth of land by signing notes with a tenor of 10 months, 6% interest


 5 Paid employee salaries and wages of $3,000. Partly for February salaries and wages that are still not paid and partly for March salaries and wages


7 Received $3,200 cash from customer to pay off debt (payment beyond discount period)


11 Sold merchandise for $10,700 for cash. The cost of merchandise sold was $5,150.
15 Purchased merchandise from CV. Grove of $ 12,000, terms 3/10, n / 30, FOB shipping point with freight of $ 130 payable March 16th. 

18 Purchased $ 3,250 worth of inventory cash. 20 Sold $ 21,000 of merchandise, terms 1/10, n / 30. The cost of the merchandise sold was $ 12,420. 20 Employees' salaries and wages are $ 2,900. 

25 Paying off debts to CV. Grove in full. 

30 Received payment in full from customer for sales made on March 20. 

31 Declared and paid a cash dividend of $ 800. 

Additional accounts on the chart of accounts of PT. Surya Fajar is Notes Payable, Interest Payable, Dividend, Summary of Income, Cost of Goods Sold, Sales Revenue, Sales Discounts, Supplies Expenses, Depreciation Expenses, Insurance Expenses, Salaries and Wages Expenses, Rental Expenses and Interest Expenses. PT. Surya Fajar compiled a financial report on March 31, 2020. Every sale transaction of PT. Surya Fajar is done by taking merchandise directly by his customers, so there is no transportation cost that has to be recruited by PT. Surya Fajar regarding his sales transaction.

Instructions: 

a. Make a journal of PT. Surya Fajar for transactions in March 2020 using a perpetual inventory system. 

b. The following is additional data related to the adjusting entry: 

1. Depreciation of equipment for 1 year is $ 4,500. 

2. Depreciation of buildings for 1 year is $ 1,500. 

3. Prepaid rent is the advance rental payment for a period of 1 year for the rental period January-December 2020. 

4. Prepaid insurance is the payment of insurance policy for equipment for the period January-June 2020. 

5. Physical calculation of supplies shows the remaining supplies at 31 March was $ 450. 

6. The unpaid employee wages for March were $ 1,400. 

c. Make a worksheet. 

d. Prepare an income statement and retained earnings statement for March 2020 and prepare a classified statement of financial position as at 31 March 2020. 

e. Keep a closing journal.

Transcribed Image Text:

Cash Accounts Receivable Inventory Supplies Prepaid Insurance Prepaid Rent Land Buildings Equipment Debit $ 15,000 8,400 21,000 1,700 2,300 4,500 14,000 30,000 18.000 $.114.900 Accumulated Depreciation- Buildings Accumulated Depreciation- Equipment Accounts Payable Salaries and Wages Payable Share Capital-Ordinary Retained Earnings Credit $ 3,250 9,750 18,600 1,600 58,800 22,900 $.114.900 Cash Accounts Receivable Inventory Supplies Prepaid Insurance Prepaid Rent Land Buildings Equipment Debit $ 15,000 8,400 21,000 1,700 2,300 4,500 14,000 30,000 18.000 $.114.900 Accumulated Depreciation- Buildings Accumulated Depreciation- Equipment Accounts Payable Salaries and Wages Payable Share Capital-Ordinary Retained Earnings Credit $ 3,250 9,750 18,600 1,600 58,800 22,900 $.114.900

Answer rating: 100% (QA)

Adjusting Entries 1 Purchase of Land using Notes Dr Land 20000 Cr Notes payable 20000 To record purc... View the full answer