Q2. In March 2013, Marine tangerine organized a corporation to provide package delivery services. The company, called Tone Deliveries, Inc., began operations immediately. Transactions during the month of March were as follows: Mar. 2 The corporation issued 40,000 shares of capital stock to Marine in exchange for $80,000 cash. Purchased a truck for $45,000. Made a $15,000 cash down payment and issued a note payable for the remaining balance. Mar. 4 Mar. 5 Paid Sloan Properties $2,500 to rent office space for the month. Mar. 9 Billed customers $11,300 for services for the first half of March. Mar. 15 Paid $7,100 in salaries earned by employees during the first half of March. Mar. 19 Paid Bill's Auto $900 for maintenance and repair services on the company truck. Mar. 20 Collected $3,800 of the amounts billed to customers on March 9. Mar. 28 Billed customers $14,400 for services performed during the second half of the month. Mar. 30 Paid $7,500 in salaries earned by employees during the second half of the month. Mar. 30 Received an $830 bill from SY Petroleum for fuel purchased in March. The entire amount is due by April 15. Mar. 30 Declared a $1,200 dividend payable on April 30. Instructions a. Analyze the effects that each of these transactions will have on the six components of the company's financial statements for the month of March. Organize your answer in tabular form. b. Prepare journal entries (including explanations) for each transaction. c. Post each transaction to the appropriate ledger accounts d. Prepare a trial balance dated March 31, 2013.
Q2. In March 2013, Marine tangerine organized a corporation to provide package delivery services. The company, called Tone Deliveries, Inc., began operations immediately. Transactions during the month of March were as follows: Mar. 2 The corporation issued 40,000 shares of capital stock to Marine in exchange for $80,000 cash. Purchased a truck for $45,000. Made a $15,000 cash down payment and issued a note payable for the remaining balance. Mar. 4 Mar. 5 Paid Sloan Properties $2,500 to rent office space for the month. Mar. 9 Billed customers $11,300 for services for the first half of March. Mar. 15 Paid $7,100 in salaries earned by employees during the first half of March. Mar. 19 Paid Bill's Auto $900 for maintenance and repair services on the company truck. Mar. 20 Collected $3,800 of the amounts billed to customers on March 9. Mar. 28 Billed customers $14,400 for services performed during the second half of the month. Mar. 30 Paid $7,500 in salaries earned by employees during the second half of the month. Mar. 30 Received an $830 bill from SY Petroleum for fuel purchased in March. The entire amount is due by April 15. Mar. 30 Declared a $1,200 dividend payable on April 30. Instructions a. Analyze the effects that each of these transactions will have on the six components of the company's financial statements for the month of March. Organize your answer in tabular form. b. Prepare journal entries (including explanations) for each transaction. c. Post each transaction to the appropriate ledger accounts d. Prepare a trial balance dated March 31, 2013.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Q2. In March 2013, Marine tangerine organized a corporation to provide package delivery
services. The company, called Tone Deliveries, Inc., began operations immediately. Transactions
during the month of March were as follows:
Mar. 2
The corporation issued 40,000 shares of capital stock to Marine in exchange for
$80,000 cash.
Purchased a truck for $45,000. Made a $15,000 cash down payment and issued a
note payable for the remaining balance.
Mar. 4
Mar. 5
Paid Sloan Properties $2,500 to rent office space for the month.
Mar. 9
Billed customers $11,300 for services for the first half of March.
Mar. 15 Paid $7,100 in salaries earned by employees during the first half of March.
Mar. 19
Paid Bill's Auto $900 for maintenance and repair services on the company truck.
Mar. 20 Collected $3,800 of the amounts billed to customers on March 9.
Mar. 28 Billed customers $14,400 for services performed during the second half of the
month.
Mar. 30 Paid $7,500 in salaries earned by employees during the second half of the month.
Transcribed Image Text:Mar. 30 Received an $830 bill from SY Petroleum for fuel purchased in March. The entire
amount is due by April 15.
Mar. 30 Declared a $1,200 dividend payable on April 30.
Instructions
a. Analyze the effects that each of these transactions will have on the six components of the
company's financial statements for the month of March. Organize your answer in tabular
form.
b. Prepare journal entries (including explanations) for each transaction.
c. Post each transaction to the appropriate ledger accounts
d. Prepare a trial balance dated March 31, 2013.
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