You’ve just secured a new client in your accounting practice, Howard's Flight Radio Management Corporation (HFRM), a brand new small business specializing in flight management systems (FMS). The owner, Howard Allan, is a former Air Force pilot and retired Colonel, but definitely not an accountant. Your job is to help Howard put his affairs in order. Luckily Howard has only been in operation for a month and things have not gotten too out of hand yet! Howard has to submit his financial statements to his investors and doesn’t know where to begin. It’s your job to go through the complete Accounting cycle to prepare the financial statements for the HFRM. Date Transaction Description March 1 Began business by making a deposit in a company bank account of $22500, in exchange for 2,250 shares of $10 par value common stock. March 1 Paid the premium on a 1-year insurance policy, $2,160. March 1 Paid the current month's rent expense, $1,800. March 3 Purchased repair equipment from Fred Company, $5,800. Paid $2200 down and the balance was placed on account. The rest will be paid in equal payments over the next 12 months. The first payment is due 4/1. Note: Use Accounts Payable for the Balance Due. March 8 Purchased repair supplies from Gary Company on credit, $650. March 10 Paid telephone bill for March, $400. March 11 Cash flight management system (FMS) repair revenue for the first third of March, $2000. March 18 Made payment to Gary Company, $400. March 20 Cash FMS repair revenue for the second third of March, $2,450. March 31 Cash FMS repair revenue for the last third of March, $1,500. March 31 Paid the current month's electic bill, $300. March 31 Declared and paid cash dividend of $1,000. Prepare Journal entries into the general journal.. Date Account Number from Chart of Accounts tab Account Title from Chart of Accounts tab Debit Credit 0 -

You’ve just secured a new client in your accounting practice, Howard's Flight Radio Management Corporation (HFRM), a brand new small business specializing in flight management systems (FMS). The owner, Howard Allan, is a former Air Force pilot and retired Colonel, but definitely not an accountant. Your job is to help Howard put his affairs in order. Luckily Howard has only been in operation for a month and things have not gotten too out of hand yet! Howard has to submit his financial statements to his investors and doesn’t know where to begin. It’s your job to go through the complete Accounting cycle to prepare the financial statements for the HFRM. Date Transaction Description March 1 Began business by making a deposit in a company bank account of $22500, in exchange for 2,250 shares of $10 par value common stock. March 1 Paid the premium on a 1-year insurance policy, $2,160. March 1 Paid the current month's rent expense, $1,800. March 3 Purchased repair equipment from Fred Company, $5,800. Paid $2200 down and the balance was placed on account. The rest will be paid in equal payments over the next 12 months. The first payment is due 4/1. Note: Use Accounts Payable for the Balance Due. March 8 Purchased repair supplies from Gary Company on credit, $650. March 10 Paid telephone bill for March, $400. March 11 Cash flight management system (FMS) repair revenue for the first third of March, $2000. March 18 Made payment to Gary Company, $400. March 20 Cash FMS repair revenue for the second third of March, $2,450. March 31 Cash FMS repair revenue for the last third of March, $1,500. March 31 Paid the current month's electic bill, $300. March 31 Declared and paid cash dividend of $1,000. Prepare Journal entries into the general journal.. Date Account Number from Chart of Accounts tab Account Title from Chart of Accounts tab Debit Credit 0 -

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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Date	Transaction Description
March 1	Began business by making a deposit in a company bank account of $22500, in exchange for 2,250 shares of $10 par value common stock.
March 1	Paid the premium on a 1-year insurance policy, $2,160.
March 1	Paid the current month's rent expense, $1,800.
March 3	Purchased repair equipment from Fred Company, $5,800. Paid $2200 down and the balance was placed on account. The rest will be paid in equal payments over the next 12 months. The first payment is due 4/1. Note: Use Accounts Payable for the Balance Due.
March 8	Purchased repair supplies from Gary Company on credit, $650.
March 10	Paid telephone bill for March, $400.
March 11	Cash flight management system (FMS) repair revenue for the first third of March, $2000.
March 18	Made payment to Gary Company, $400.
March 20	Cash FMS repair revenue for the second third of March, $2,450.
March 31	Cash FMS repair revenue for the last third of March, $1,500.
March 31	Paid the current month's electic bill, $300.
March 31	Declared and paid cash dividend of $1,000.

Prepare Journal entries into the general journal..

Date	Account Number from Chart of Accounts tab	Account Title from Chart of Accounts tab	Debit	Credit











































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