The trial balance of My Motor, Inc. on March 1, 20XX, lists the entity's assets, liabilities,...

 

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The trial balance of My Motor, Inc. on March 1, 20XX, lists the entity's assets, liabilities, and owner's equity on that date. Balance Account Title Debit 26,000 Credit Cash Accounts receivable 4,500 Accounts payable Common Stock 2,000 20,500 Retained earnings 8,000 30,500 Total 30,500 During March, the business engaged in the following transactions: a. Borrowed S45,000 from the bank and signed a note payable in the name of the business. b. Paid cash of S40,000 to acquire land. c. Performed service for a customer and received cash of $5,000. d. Purchased supplies on account, $300. e. Performed customer service and earned revenue on account, $2,600. f Paid $1,200 on account. g Paid the following cash expenses: salaries, $3,000; rent, $1,500; and interest, $400. h. Received $3,100 on account. i Received a $200 utility bill that will be paid next week. i Paid cash dividends of $1,800. Required: 1.) Prepare journal entries for each transaction. Enter journal entries by the transaction letter. 2.) Prepare the trial balance of My Motors, Inc. at March 31, 20XX. 3.) Prepare financial statements for My Motors, Inc. for the period ending March 31, 20XX. (Income Statement and Balance sheet) The trial balance of My Motor, Inc. on March 1, 20XX, lists the entity's assets, liabilities, and owner's equity on that date. Balance Account Title Debit 26,000 Credit Cash Accounts receivable 4,500 Accounts payable Common Stock 2,000 20,500 Retained earnings 8,000 30,500 Total 30,500 During March, the business engaged in the following transactions: a. Borrowed S45,000 from the bank and signed a note payable in the name of the business. b. Paid cash of S40,000 to acquire land. c. Performed service for a customer and received cash of $5,000. d. Purchased supplies on account, $300. e. Performed customer service and earned revenue on account, $2,600. f Paid $1,200 on account. g Paid the following cash expenses: salaries, $3,000; rent, $1,500; and interest, $400. h. Received $3,100 on account. i Received a $200 utility bill that will be paid next week. i Paid cash dividends of $1,800. Required: 1.) Prepare journal entries for each transaction. Enter journal entries by the transaction letter. 2.) Prepare the trial balance of My Motors, Inc. at March 31, 20XX. 3.) Prepare financial statements for My Motors, Inc. for the period ending March 31, 20XX. (Income Statement and Balance sheet)

Answer rating: 100% (QA)

1 Prepare the journal entries of the company for March Explanation Common mistakes Hint for next step It is mentioned to prepare the journal entries of the company for March aThe company borrowed 4500... View the full answer