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The following transaction occurred during March 2023, for Rehearsal Gift Shop, a SOLE PROPRIETORSHIP: March 1 3 7 9 10 12 16 23 30 Owner made $20,000 cash investment in the business. Purchased $5,000 of inventory on account under terms of 4/10, n/30. Returned $1,000 of defective merchandise purchased on March 3. Paid freight bill of $250 for the March 3 inventory purchase. Sold inventory on account for $8,000. Payment terms were 2/15, n/30. These goods originally cost the company $4,000. Paid amount owed on the March 3 inventory. Received sales return of $1,000 on the March 10 sale. The original cost is $500. Received cash from March 10 customer in full settlement of her debt. Dress Rehearsal Gift Shop also incurred the following Operating Expenses and paid with cash: Salary Expense $ 1,500 750 Rent Expense $ Utilities Expense $ 375 Supplies Expense $ 250 Requirements: 1. Journalize the transactions noted above. 2. Post the transactions to the T-accounts. 3. Prepare the Trial Balance.

The following transaction occurred during March 2023, for Rehearsal Gift Shop, a SOLE PROPRIETORSHIP: March 1 3 7 9 10 12 16 23 30 Owner made $20,000 cash investment in the business. Purchased $5,000 of inventory on account under terms of 4/10, n/30. Returned $1,000 of defective merchandise purchased on March 3. Paid freight bill of $250 for the March 3 inventory purchase. Sold inventory on account for $8,000. Payment terms were 2/15, n/30. These goods originally cost the company $4,000. Paid amount owed on the March 3 inventory. Received sales return of $1,000 on the March 10 sale. The original cost is $500. Received cash from March 10 customer in full settlement of her debt. Dress Rehearsal Gift Shop also incurred the following Operating Expenses and paid with cash: Salary Expense $ 1,500 750 Rent Expense $ Utilities Expense $ 375 Supplies Expense $ 250 Requirements: 1. Journalize the transactions noted above. 2. Post the transactions to the T-accounts. 3. Prepare the Trial Balance.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following transaction occurred during March 2023, for Rehearsal Gift Shop, a SOLE PROPRIETORSHIP: March 1 3 7 9 10 12 16 23 30 Owner made $20,000 cash investment in the business. Purchased $5,000 of inventory on account under terms of 4/10, n/30. Returned $1,000 of defective merchandise purchased on March 3. Paid freight bill of $250 for the March 3 inventory purchase. Sold inventory on account for $8,000. Payment terms were 2/15, n/30. These goods originally cost the company $4,000. Paid amount owed on the March 3 inventory. Received sales return of $1,000 on the March 10 sale. The original cost is $500. Received cash from March 10 customer in full settlement of her debt. Dress Rehearsal Gift Shop also incurred the following Operating Expenses and paid with cash: Salary Expense $ 1,500 750 Rent Expense $ Utilities Expense $ 375 Supplies Expense $ 250 Requirements: 1. Journalize the transactions noted above. 2. Post the transactions to the T-accounts. 3. Prepare the Trial Balance. 4. Prepare a multi-step income statement for Rehearsal Gift Shop for the month ended March 31, 2023.
Transcribed Image Text:The following transaction occurred during March 2023, for Rehearsal Gift Shop, a SOLE PROPRIETORSHIP: March 1 3 7 9 10 12 16 23 30 Owner made $20,000 cash investment in the business. Purchased $5,000 of inventory on account under terms of 4/10, n/30. Returned $1,000 of defective merchandise purchased on March 3. Paid freight bill of $250 for the March 3 inventory purchase. Sold inventory on account for $8,000. Payment terms were 2/15, n/30. These goods originally cost the company $4,000. Paid amount owed on the March 3 inventory. Received sales return of $1,000 on the March 10 sale. The original cost is $500. Received cash from March 10 customer in full settlement of her debt. Dress Rehearsal Gift Shop also incurred the following Operating Expenses and paid with cash: Salary Expense $ 1,500 750 Rent Expense $ Utilities Expense $ 375 Supplies Expense $ 250 Requirements: 1. Journalize the transactions noted above. 2. Post the transactions to the T-accounts. 3. Prepare the Trial Balance. 4. Prepare a multi-step income statement for Rehearsal Gift Shop for the month ended March 31, 2023.
The accounts of Rehearsal Biz, a SOLE PROPRIETORSHIP, are listed along with their adjusted balances before closing for the year ended June 30, 2023, Prepaid Expenses Inventory Note payable, long-term Salary payable Supplies Expense Depreciation Expense Sales revenue Rent Expense Office Supplies Unearned sales revenue Sales Returns & Allowances S 1,000 39,000 46,000 2,000 2,500 7,500 400,000 38,000 6,000 13,000 40,000 Accounts payable Accounts receivable Accumulated depreciation Owner Capital, July 1, 2022 Owner Withdrawals Cash Cost of goods sold Equipment Salaries Expense Notes payable, short-term Sales Discounts All month-end adjustments have already been made. Assume all accounts have normal balances. No dividends were declared or paid during the fiscal year. Requirements: 1. Prepare a multi-step income statement 2. Prepared the statement of retained earnings 3. Prepared a classified balance sheet 16,700 33,000 37,000 208,000 54,000 84,000 200,000 135,000 80,000 1,300 4,000
Transcribed Image Text:The accounts of Rehearsal Biz, a SOLE PROPRIETORSHIP, are listed along with their adjusted balances before closing for the year ended June 30, 2023, Prepaid Expenses Inventory Note payable, long-term Salary payable Supplies Expense Depreciation Expense Sales revenue Rent Expense Office Supplies Unearned sales revenue Sales Returns & Allowances S 1,000 39,000 46,000 2,000 2,500 7,500 400,000 38,000 6,000 13,000 40,000 Accounts payable Accounts receivable Accumulated depreciation Owner Capital, July 1, 2022 Owner Withdrawals Cash Cost of goods sold Equipment Salaries Expense Notes payable, short-term Sales Discounts All month-end adjustments have already been made. Assume all accounts have normal balances. No dividends were declared or paid during the fiscal year. Requirements: 1. Prepare a multi-step income statement 2. Prepared the statement of retained earnings 3. Prepared a classified balance sheet 16,700 33,000 37,000 208,000 54,000 84,000 200,000 135,000 80,000 1,300 4,000
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