Notwist Copy Company incurred the following transactions during the month of March 2021.
March 1, 2021
M. Archer, the owner of Notwist, invests $70,000 cash to start the business. Purchased three pieces of equipment for $160,000, paying $50,000 cash and signing a 5-year, 10% note for the remainder. Purchased $5,000 supplies on credit. Cash revenue amounted to $7,000. Paid $500 cash for radio advertising. Paid $800 on account for supplies purchased on March 5, 2021. Owner withdrew $2,100 from the business for personal expenses. Paid $1,200 cash for rent for the current month. Received $2,000 cash advance from a customer for future copying. Billed a customer for $575 for photocopy work done.
March 3, 2021
March 5, 2021
March 10, 2021
March 15, 2021
March 20, 2021
March 22, 2021
March 29, 2021
March 30, 2021
March 31, 2021
Requirements:
1) Make a tabular analysis of the transactions on the accounting equation. Use the following:
Notes payable, Unearned service revenue, Owner's capital, Withdrawal, Revenues, Expenses
2) Journalize the above transactions.
3) Prepare necessary T accounts.
4) Prepare a trial balance on March 31, 2021.
Other data:
a) The office equipment has an estimated useful life of 80 months with zero salvage value.
b) The physical count revealed $2,000 supplies on hand at the end of the month.
c) Provided $1,000 service during the month in respect of advance receipt from the customer.
d) Interest accrued on the notes payable.
Requirements:
5) Prepare necessary adjusting entries on March 31, 2021.
Enter the trial balance on a worksheet and complete the worksheet.
Prepare an income statement for the month ended March 31, 2021, an owner's equity statement on March 31, 2021, and a balance sheet on March 31, 2021.
8) Prepare necessary closing entries on March 31, 2021.
9) Prepare a post-closing trial balance on March 31, 2021.
Instructions for the assignment: You should solve the assignment on your script, take an image of the answers, convert it into a PDF, and upload the PDF file. Prepare a cover page mentioning your name, ID, Course Code, Section; faculty particulars, etc. Your cover page should appear as the first page. You may use scanning apps to take images.
