Question

Because the business did so well in its first month of operation, on March 1, Avery decided to open a retail store to complement the snowboarding lesson business. To begin, the retail store will sell snowboards only. If the retail business is profitable, Avery may expand the store’s offerings to include coats, hats, boots, goggles, and other snowboarding equipment.
On the first of the month, Avery paid 6 months’ rent for the store in advance at $2200 per month.
Avery purchased supplies for the store in the amount of $425 in cash from the Burlington Supply Co on
March 1 as well. Wages were paid on March 1 in the amount of $2120. These wages covered the last 2 weeks of February. On March 2, Avery placed an order for snowboards in the amount of $7600 from the Mad River Snow Board Manufacturing Company.
Avery purchased furniture and fixtures for $4500 on March 3. You determine that the useful life of the furniture and fixtures is 7 years. Avery pays cash for the furniture and fixtures.
The store received the delivery of snowboards from the Mad River Snow Board Manufacturing Company worth $7600 on March 4. In order to conserve cash, Avery purchased the snowboards on credit. The bill for the snowboards is due in 45 days.
Journal entries to record sales are entered into the general journal weekly. On March 7, week 1 sales were recorded. Week one sales were $4200. Of this amount, $2300 was in cash, the remainder
on credit. The cost of the snowboards sold was $2167. The inventory account is updated at the same time sales are recorded. On March 12 Avery paid $749 to the Mad River Snow Board Manufacturing Company for the snowboards received on March 7.
Wages were paid on March 15 in the amount of $2120. These wages covered the first two weeks of March. Sales for week 2 were recorded on March 15. Sales for week two totaled $4300. Of
this amount, $1889 was in cash, the remainder was on credit. The cost of the snowboards sold was $1500.
On March 20, the store received payment of $120 from a customer who purchased a snowboard on credit during week 2. On March 21, a customer returned an unused snowboard. Avery gave the
customer a full refund, in the amount of $330 in cash.   The snowboard cost Avery $178.
On March 23, week 3 sales were recorded. Sales for week 3 totaled $4300. Of this amount, $1700 was in cash, the remainder on credit. The cost of the snowboards sold was $1421. On March 27,
Avery paid the Mad River Snow Board Manufacturing Company $1320.
On March 31, week 4 sales are recorded. Sales for week 4 totaled $3700. $1256 was in cash, the remainder on credit. The cost of the snowboards sold was $1073.
On March 31, the store received a bill for internet and phone services for the month of March. The amount of the bill is $1098. The bill is due on April 15.
You perform an inventory of the supplies on March 31. The count reveals that there is $134 worth of supplies left on hand at the end of the month. Wages for the last 2 weeks of March in the amount of $2120 will be paid on April 1.
Required:
For the month of March:
1. Record all transactions in journal entry form in the general journal.
	Make sure to include the date and explanations.
2. Post the journal entries to the general ledger accounts.
3. Prepare a worksheet with the following columns: Trial Balance, Adjustments, Adjusted Trial
	Balance, Income Statement, Balance Sheet
4. Update the worksheet to reflect the unadjusted trial balance.
5. Prepare all necessary month-end adjusting entries (remember the adjusting entries made at the end of February).
6. Post the adjusting entries to the general ledger.
7. Complete the worksheet.
8. Prepare a Multistep Income Statement, Statement of Retained Earnings, and a Classified
	Balance Sheet in good form.
9. Record closing entries in general journal.
10. Post closing entries to the general ledger.
11. Prepare a post closing trial balance.

Answer 1

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Please hit LIKE button if this helped. For any further explanation, please put your query comment, will get back to you. Part 1 Part 3,4,7,11 Unadjusted Adjustment Credit Adiusted Post Closing Debit Credit Credit Credit Debit Credit Date Account Accounts Debit Debi Debit 5 13,200 17,499 Mar 1 Rent Ca 17,499 17.499 $ 13.200 Cash counts Receivable 9.235 9,235 9,235 (To mcard payment Rent in advance) Snowhoards 1.617 1617 1.617 2.200 S Prepaid Rent 13.200 11.000 11.000 291 S Mar 1 425 Supplies 134 2- 134 425 Fixturas . 4,500 (To record payment for supplies Accumulated Depreciation 51 54 6.529 6,629 Accounts Payable Wages Payahle tained Earning 6,629 S 2,120 Mar 1 2.120 2.120 Wages Payable S 2.120 2.304 16500 dpayment of woges 16,500 330 Salos Roturn and allowanca 330 5 4,500 Mar 3 Furniture and Fixtures Cost of Goods Sold 5.983 5,983 $ 4,500 Cash Telephone Expense d purchase offurnitures) 4 240 2,120 Supplies Expense 291 291 s 7,600 Mar 4 Snawboards Depreication Expense S 7.600 Accounts Payable Rent Expense 2,200 .200 To record purchase of snowboards A0 628 40 628 4,665 $40,682 4,665 $ 40.682 S 26.486 S Total 26.486 S 2,300 5 1,900 Cash Mar 7 Accounts Receivable Income Statement: $ 4.200 Sale 16.500 (lo mrard sale! Sale ess. S 2,167 Sales Return and allowance Mar 7 Cost of Gopds Spld -330 S 2.167 Snawhnards Nat Sale $16,170 To record cost of goods sold) Cart af Gonts Spld 5,983 Mar 12 Accounts Pavable 74s Gross Profit 10,187 Cash Less: Operating Expense 749 (To record payment) Telephone Experse L098 Wages Expense 5 2,120 Mar 15 Wages Expense Cash To record payment 2.120 Depreication Expense woges Rent Expense 200 Total Operating Expense -283 2.304 Mar 15 Cash 1a89 Net Income Accounts Receivable 2411 Sale 4300 (To recard sale

$ 1,500 Мar 15 Cost of Gaods Sald S 1,500 Snowboards To recurd cost of goods sold) Mar 20 Cash 120 Accounts Receivable 120 (To record cash received) Sales Return and allowance Mar 21 30 Cash 330 (io record sales return) Mar 21 1/8 Goods Sold (To record cost of goods returned) 178 $1,700 $ 2,600 Mar 23 Cash Receivable Eele 4 300 (To record sale $ 1.421 Cost of Goods Sald Mar 23 Snnwhoards 1,421 (To record cost af goods sold) Accounts Payable Cash (To record payrnenc) $1.320 Mar 27 $ 1,320 $ 1.256 $ 2,444 as Mar 31 Accounts Receivable $ 3.700 Sale (To record sale) Mar 31 Cost of Goods Sold 1,05 S 1,073 Snowboards (To record cost of goods sold) $ 1,098 Mar 31 Telephone Expense Accounts Payable S1,098 (To record internet and ohone expense) Adjusting Mar 31 S Supplies Expensc 291 9 ppn 'supplies Expanse) $425-$134 To $ 2.120 Mar 31 Wages Expersе Wages Payable (To record payrrent of wages) 2,120 $ 2,200 Mar 31 Rent Expense Prepaid Rent (To reocrd rent expense) 2200 Mar 31 54 Accumulated Depreciation (io record depreciation expense) $4,500/84 months Closing Entries: Mar 31 $16.500 Sale Income Summary (To close sale account) 16,500 Mar 31 $14,196 Salor Botu lowance 220 Telephone Fxprnse 1,098 $ 4,240 Wages Expense Supplies Expense Depreication Expense 291 54 * 2,200 (To elase expere ULLount Income Summary Mar 31 2,304 $ 2.304 Retained Earning (To close income summory account)