Reference no: EM131519650

Question: Below are the transactions for Ute Sewing Shop for March, the first month of operations.

March 1 Issue common stock in exchange for cash of $2,000.

March 3 Purchase sewing equipment by signing a note with the local bank, $1,700.

March 5 Pay rent of $500 for March.

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.

March 12 Purchase sewing supplies for $120 on account. This material will be used to provide services to customers.

March 15 Martha receives altered dresses and pays $700 to Ute.

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. March 25 Bob receives his completed overalls.

March 30 Pay utilities of $85 for the current period.

March 31 Pay dividends of $100 to stockholders.

Required: 1. Record each transaction.

2. Post each transaction to the appropriate T-accounts.

3. Calculate the balance of each account at March 31.

4. Prepare a trial balance as of March 31.

Ute uses the following accounts: Cash, Supplies, Equipment, Accounts Payable, Unearned Revenue, Notes Payable, Common Stock, Dividends, Service Revenue, Rent Expense, and Utilities Expense.