| During its first month of operation, the Bethany’s Bicycle Corporation, which specializes in bicycle repairs, completed the following transactions. |
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March Transactions |
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Date |
Transaction Description |
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March 1 |
Began business by making a deposit in a company bank account of $20,000, in exchange for 2,000 shares of $10 par value common stock. |
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March 1 |
Paid the premium on a 1-year insurance policy, $2,400. |
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March 1 |
Paid the current month’s store rent expense, $1,900. |
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March 3 |
Purchased repair equipment from Andrew Company, $5,800. Paid $1,000 down and the balance was placed on account. Payments will be $400.00 per month for 12 months. The first payment is due 4/1. Note: Use Accounts Payable for the Balance Due. |
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March 8 |
Purchased repair supplies from Jackson Company on credit, $650. |
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March 10 |
Paid telephone bill for March, $340. |
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March 11 |
Cash bicycle repair revenue for the first third of March, $1,650. |
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March 18 |
Made payment to Jackson Company, $400. |
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March 20 |
Cash bicycle repair revenue for the second third of March, $2,450. |
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March 31 |
Cash bicycle repair revenue for the last third of March, $1,250. |
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March 31 |
Paid the current month’s electice bill, $250. |
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March 31 |
Declared and paid cash dividend of $1,000. |
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