Reference no: EM132421013

Joanne Beauport, a connoisseur of fine chocolate, opened Joanne's Chocolates Inc. in Newtown on March 1, 2017. The shop specializes in a selection of gourmet chocolates and a line of gourmet ice cream. You have been hired as manager. Your duties include maintaining the store's financial records. The following transactions occurred in March 2017, the first month of operations:

a. Received contributions of $61,000 in total from four shareholders to form the corporation.

b. Paid store rent for three months at $1,650 per month (recorded as prepayment).

c. Purchased supplies for $850 cash.

d. Purchased chocolates on account for $6,300, due in 30 days.

e. Issued additional shares to new investors for $10,500 cash.

f. Used the money from (e) to purchase a computer for $4,100 (for recordkeeping and inventory tracking). The rest was used to buy furniture and fixtures for the store.

g. Placed a grand-opening advertisement in the local paper for $860 cash.h.Sold chocolates for $4,300; $3,800 was in cash and the rest on account. The cost of the chocolates sold was $2,200.

i. Made a $1,100 payment on accounts payable.

j. Incurred and paid employee wages of $2,620.

k. Collected accounts receivable of $210 from customers.

l. Made a repair on one of the display cases for $273 cash.

m. Made cash sales of $5,800 during the rest of the month. The cost of the chocolates and ice cream sold was $2,950.

Questions:

1.Post the above transactions in to the appropriate T-accounts

2. Write a statement of earnings for March 2017