Question

Required information Problem 2-7A Complete the steps in the measurement of external transactions (LO2-4, 2-5, 2-6) [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 $1,700. March 3 Purchase sewing equipment by signing a note with the local bank, $1,400. March 5 Pay rent of $470 for March March 7 Martha, a customer, places an order for alterations to several dresses. Ute estimates that the alterations will cost Martha $670. Martha is not required to pay for the alterations until the work is complete. March 12 Purchase sewing supplies for $117 on account. This material will be used to provide services to customers. March 15 Ute delivers altered dresses to Martha and receives $670. March 19 Ute agrees to alter 10 business suits for Bob, who has lost a significant amount of weight recently. Ute receives 5570 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 $82 for the current period. March 31 Pay dividends of $85 to stockholders.

Answer 1

Preparation of Trial Balance as of March 31 UTE SEWING SHOP Trial Balance Mar-31 Accounts Debit Credit Workings Cash $ 2,303 $ 1100-410+610+510-76-55 Supplies $ 117 $ Equipment $ 1,400 $ Accounts Payable $ $ 117 Deferred Revenue $ $ 570-570 Notes Payable $ $ 1,400 Common Stock $ $ 1,700 Dividends $ 85 $ Service Revenue $ $ 1,240 670+570 Rent Expense $ 470 $ Utilities Expense $ 82 $ Total $ 4,457 $ 4,457 - Kindly Comment down for any clarifications/ queries and please upvote.