Question

Required information [The following information applies to the questions displayed below.) Below are the transactions for Ute Sewing Shop for March, the first month of operations. March 1 Issue common stock in exchange for cash of $1,000. March 3 Purchase sewing equipment by signing a note with the local bank, $700. March 5 Pay rent of $400 for March. March 7 Martha, a customer, places an order for alterations to several dresses. Ute estimates that the alterations will cost Martha $600. Martha is not required to pay for the alterations until the work is complete. March 12 Purchase sewing supplies for $110 on account. This mateial will be used to provide services to customers. March 15 Ute delivers altered dresses to Martha and receives $600. March 19 Ute agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Ute receives $500 from Bob and promises the suits to be completed by March 25. March 25 Ute delivers 10 altered business suits to Bob. March 30 Pay utilities of $75 for the current period. March 31 Pay dividends of $50 to stockholders.

Answer 1

1. General Journal

Date	Account Title and Explanation	Debit	Credit
March.01	Cash	$1,000
	Common Stock		$1,000
March.03	Equipment	$700
	Notes Payable		$700
March.05	Rent Expense	$400
	Cash		$400
March.07	No entry Required
March.12	Supplies Expense	$110
	Accounts Payable		$110
March.15	Cash	$600
	Service Revenue		$600
March.19	Cash	$500
	Deferred Revenue		$500
March.25	Deferred Revenue	$500
	Service Revenue		$500
March.30	Utilities Expense	$75
	Cash		$75
March.31	Dividends	$50
	Cash		$50

2. Cash

Beg.Bal	$0
March.01	$1,000	$400	March.05
March.15	$600	$75	March.30
March.19	$500	$50	March.31
End.Bal	$1,575

Supplies

Beg.Bal	$0
March.12	$110
End.Bal	$110

Equipment

Beg.Bal	$0
March.03	$700
End. Bal	$700

Accounts Payable

Beg.Bal		$0
		$110	March.12
End.Bal		$110

Deferred Revenue

Beg.Bal		$0
March.25	$500	$500	March.19
End.Bal		$0

Notes Payable

Beg.Bal		$0
		$700	March.3
End.Bal		$700

Common Stock

Beg.Bal		$0
		$1,000	March.01
End.Bal		$1,000

Dividends

Beg.Bal	$0
March.31	$50
End.Bal	$50

Service Revenue

Beg.Bal		$0
		$600	March.15
		$500	March.25
End.Bal		$1,100

Rent Expense

Beg.Bal	$0
March.05	$400
End.Bal	$400

Utilities Expenses

Beg. Bal	$0
March.30	$75
And.Bal	$75

3. UTE SEWING SHOP Trail Balance March 31

Accounts	Debit	Credit
Cash	$1,575
Supplies	$110
Equipment	$700
Accounts Payable		$110
Deferred Revenue		$0
Notes Payable		$700
Common Stock		$1,000
Dividends	$50
Service Revenue		$1,100
Rent Expenses	$400
Utilities Expenses	$75
Total	$2,910	$2,910