Question

Journalizing Transactions

Great Bear Adventures rents and sells snowshoes and dogsledding equipment. During March, Great Bear engaged in the following transactions:

March 2		Received $41,200 cash from customers for rentals
3		Purchased on credit five new pairs of snowshoes (which Great Bear classifies as inventory) for $140 each
6		Paid wages to employees in the amount of $8,500
9		Paid office rent for the month in the amount of $1,300
12		Purchased a new Ford truck for $37,800; paid $1,000 down in cash and secured a loan from Scotiabank for the $36,800 balance
13		Collected a $950 account receivable
16		Paid an account payable in the amount of $870
23		Borrowed $15,000 on a six-month, 8% note payable
27		Paid the monthly telephone bill of $145
30		Paid a monthly advertising bill of $1,260

Required:

Prepare a journal entry for each of the above transactions. For a compound transaction, for those boxes in which no entry is required, leave the box blank.

Mar. 2
	(Record revenue)
Mar. 3
	(Record purchase of snowshoes)
Mar. 6
	(Record wages)
Mar. 9
	(Record rent)
Mar. 12
	(Record purchase of truck)
Mar. 13
	(Record collection of customer account)
Mar. 16
	(Record payment of account owed)
Mar. 23
	(Record borrowing of cash)
Mar. 27
	(Record payment of telephone bill)
Mar. 30
	(Record payment for advertising)

Answer 1