Question

Three former college classmates decided to open a store near campus to sell wireless equipment to students. They created a public company, The Wire, and issued stock to interested investors. They plan on creating monthly financial statements.

Required: Several transactions occurred in March. Each is described separately in this folder. For each transaction, indicate the accounts for The Wire that are affected, whether they increase or decrease, and the amount of the increase or decrease. When you record the dollar amounts, be sure to use a minus sign to indicate a decrease in the account. There are always more "Account" and "Amount" submission boxes available than are necessary.

Transaction 3 A one-year store rental lease was signed on March 1 for $14,400 for the year, and rent for the first 2 months was paid in advance. [Note: Record the complete entry for the March 1 transaction first and the complete adjusting entry on March 31 second.

ignore transaction in photo, picture only used for reference for accounts

Answer 1

3
Account	Dollar amount
Cash	-2400	(14400/12*2)
Prepaid rent	2400
Prepaid rent	-1200
Retained earnings	-1200