Answer:
1)
March 1 Issue common stock in exchange for cash of $2,000.
Dr Cash 2,000
Cr Common stock 2,000
March 3 Purchase sewing equipment by signing a note with the local bank, $1,700.
Dr Equipment 1,700
Cr Notes payable 1,700
March 5 Pay rent of $500 for March.
Dr Rent expense 500
Cr Cash 500
March 7 Martha, a customer, places an order for alterations to several dresses. Ute estimates that the alterations will cost Martha $700. Martha is not required to pay for the alterations until the work is complete.
no journal entry required
March 12 Purchase sewing supplies for $120 on account. This material will be used to provide services to customers.
Dr Supplies 120
Cr Accounts payable 120
March 15 Martha receives altered dresses and pays $700 to Ute.
Dr Cash 700
Cr Service revenue 700
March 19 Bob needs 100 pairs of overalls expanded as he purchased too many small and medium sizes. He pays $600 to Ute for services and expects the overalls to be completed by March 25.
Dr Cash 600
Cr Deferred revenue 600
March 25. March 25 Bob receives his completed overalls.
Cr Deferred revenue 600
Cr Service revenue 600
March 30 Pay utilities of $85 for the current period.
Dr Utilities expense 85
Cr Cash 85
March 31 Pay dividends of $100 to stockholders.
Dr Dividends 100
Cr Cash 100
2)
Cash Common stock
debit credit debit credit
2,000 2,000
500
700
600
85
<u> 100 </u>
2,615
Equipment Notes payable
debit credit debit credit
1,700 1,700
Rent expense Supplies
debit credit debit credit
500 120
Accounts payable Service revenue
debit credit debit credit
120 700
<u> 600 </u>
1,300
Deferred revenue Utilities expense
debit credit debit credit
600 85
<u>600 </u>
0 0
Dividends
debit credit
100
3) Ute Sewing Shop
Trial Balance
For the month ended March 31, 202x
Debit Credit
Cash $2,615
Supplies $120
Equipment $1,700
Accounts payable $120
Notes payable $1,700
Common stock $2,000
Dividends $100
Service revenue $1,300
Rent expense $500
Utilities expense <u> $85 </u> <u> </u>
Totals $5,120 $5,120
