You have been hired as an accountant for the Manhattan Trading Corporation and you need to record
the following transactions in the General Journal & General Ledger for March 2022. The company
owns and operates a retail electronics & appliance store. The company started on March 1, 2022.
1 Issued 300,000 shares of common stock in exchange for $700,000 cash.
2 Purchased furniture and fixtures at a cost of $30,000. $5,000 was paid in cash and a 60-day note
payable was signed for the balance owed.
3 Purchased inventory on account at a cost of $300,000. The company uses the perpetual inventory
system.
4 Credit sales for the month totaled $350,000. The cost of goods sold was $135,000.
5 Paid $4,000 in rent on the store building for the month of March.
6 Paid $12,000 to an insurance company for fire and liability insurance for a one-year period
beginning March 5.
6 Declared a $10,000 cash dividend.
7 Paid $100,000 on account for the merchandise purchased in March 3.
8 Collected $110,000 from customers on account.
9 The company needs to buy a new delivery van and has the following alternatives:
Toyota: Down Payment $ 5,000 and 60 monthly payments of $ 700 each
Ford: $ 0 down payment and 70 monthly payments of $ 850 each.
If the current interest rate is 12% compounded monthly, the company indeed purchased the best
option.
12 The following plans are offered on the purchase of the 10 Desktop Computers:
Plan A from Dell Inc.: 13,000 cash
Plan B from HP: 24 monthly payments of $ 600
Plan C from Lenovo: $ 1,000 down and 20 monthly payments of $ 650.
The interest rate is 12% compounded monthly.
March

The company purchased the best plan of all.
15 The company factors $200,000 of receivables with Chase on a with recourse basis, Chase charges
3% finance fee of receivables and retains 9% of receivable for adjustments. The company calculates
that this recourse liability (bad debts) has a fair value of $18,000.
17 The company shipped goods costing $10,000 to Brooklyn Electronics on consignment. The sales
agreement states that Brooklyn Electronics has 10 days to either sell the goods and pay our company
$14,000 for them or to return the goods to our company.
20 Paid shareholders the cash dividend of $10,000 declared on March 6.
22 The company collected $20,000 cash in advance from Queens Electronics for Merchandise to be
delivered next week; the cost of the merchandise is $ 12,000.
28 Brooklyn Electronics did not return the merchandise on consignment.
29 Shipped and delivered the Merchandise to Queens Electronics.
31 Recorded depreciation expense of $2,000 for the month on the furniture, equipment & van.
31 Recorded the amount of prepaid insurance that expired for the month.
Required:
 Trial Balance
 Income Statement for March 2022
Balance Sheet for March 2022

Statement of cash flow for march 2022

Answer rating: 100% (QA)

prepare a Trial Balance Trial Balance 3312022 Accounts Receivable 11000000 Accounts Payable 10000000 ... View the full answer