Create the trial balance and the income statement for the transactions below

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Create the trial balance and the income statement for the transactions below

Certainly! Below is the transcription of the image, formatted as if it's for an educational website:

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**Journal Entries for March**

1. **March 1:**
   - Pay the $60,000.00 Note Payable owed to Little Bank. The cash to pay off the note is taken out of Big Bank. Also, pay to Little Bank $450.00 for interest owed on the Note Payable for February. The $450.00 is also taken out of Big Bank.

2. **March 1:**
   - Take $5,025.00 cash out of Big Bank to pay for March's rent.

3. **March 2:**
   - Pay the vendor for the computer purchased on credit on February 15, 19X5; $98,000.00 cash to pay off the amount due. The cash is deposited into the Big Bank.

4. **March 5:**
   - Sale of inventory to the customer. The customer owes you $78,000.00; cost of inventory sold $32,000.00. The customer pays cash. The cash is deposited into the Big Bank.

5. **March 10:**
   - Take $22,550.00 cash out of Little Bank to pay employees for wages they have earned.

6. **March 15:**
   - Purchase machine on account from Machine Depot for $90,000.00. The transaction for March 15 will be entered on the General Ledger.

7. **March 17:**
   - Sale of inventory to the customer. The customer owes you $92,000.00; cost of inventory sold $44,000.00. The customer pays cash. The cash is deposited into the Big Bank.

8. **March 20:**
   - Pay Machinery Land $60,000.00; cash taken out of Little Bank.

9. **March 22:**
   - Purchase additional inventory on account from Vendor, $58,500.00.

10. **March 28:**
    - Sale of inventory to the customer. The customer owes you $75,000.00; cost of inventory sold $36,000.00. The customer pays cash. The cash is deposited into the Big Bank.

11. **March 29:**
    - Take $7,000.00 cash out of Big Bank to pay the monthly note payable to Machinery Ltd.

12. **March 30
Transcribed Image Text:Certainly! Below is the transcription of the image, formatted as if it's for an educational website: --- **Journal Entries for March** 1. **March 1:** - Pay the $60,000.00 Note Payable owed to Little Bank. The cash to pay off the note is taken out of Big Bank. Also, pay to Little Bank $450.00 for interest owed on the Note Payable for February. The $450.00 is also taken out of Big Bank. 2. **March 1:** - Take $5,025.00 cash out of Big Bank to pay for March's rent. 3. **March 2:** - Pay the vendor for the computer purchased on credit on February 15, 19X5; $98,000.00 cash to pay off the amount due. The cash is deposited into the Big Bank. 4. **March 5:** - Sale of inventory to the customer. The customer owes you $78,000.00; cost of inventory sold $32,000.00. The customer pays cash. The cash is deposited into the Big Bank. 5. **March 10:** - Take $22,550.00 cash out of Little Bank to pay employees for wages they have earned. 6. **March 15:** - Purchase machine on account from Machine Depot for $90,000.00. The transaction for March 15 will be entered on the General Ledger. 7. **March 17:** - Sale of inventory to the customer. The customer owes you $92,000.00; cost of inventory sold $44,000.00. The customer pays cash. The cash is deposited into the Big Bank. 8. **March 20:** - Pay Machinery Land $60,000.00; cash taken out of Little Bank. 9. **March 22:** - Purchase additional inventory on account from Vendor, $58,500.00. 10. **March 28:** - Sale of inventory to the customer. The customer owes you $75,000.00; cost of inventory sold $36,000.00. The customer pays cash. The cash is deposited into the Big Bank. 11. **March 29:** - Take $7,000.00 cash out of Big Bank to pay the monthly note payable to Machinery Ltd. 12. **March 30
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