Monmath Corp. started operations in March of Year 3. The
following transactions occur during March. Prepare:
1. Prepare the balance sheet as of March 31.
a. On March 1, Year 3, Monty contributes $20,000 for 10,000 shares of $1 par value stock.
b. On March 1, Year 3, Monmath borrows $10,000 from the bank at a 12% interest rate. The loan plus interest is due in twelve months.
c. Monmath buys $15,000 of inventory on account
d. Monmath sells $10,000 of the inventory for $12,000 on account.
e. Monmath collects all of its accounts receivable.
f. Monmath pays for one half of the inventory purchased in (c) above.
g. Repairs of $300 in cash were made to the building (record this as a repair expense)
h. The firm paid $250 for one-year subscriptions to ski magazines. None of the magazines have been received to date.
i. On March 31st, the firm purchases a machine for $10,000, freight of $675, and installation costs of $1,500
1. Prepare the balance sheet as of March 31.
a. On March 1, Year 3, Monty contributes $20,000 for 10,000 shares of $1 par value stock.
b. On March 1, Year 3, Monmath borrows $10,000 from the bank at a 12% interest rate. The loan plus interest is due in twelve months.
c. Monmath buys $15,000 of inventory on account
d. Monmath sells $10,000 of the inventory for $12,000 on account.
e. Monmath collects all of its accounts receivable.
f. Monmath pays for one half of the inventory purchased in (c) above.
g. Repairs of $300 in cash were made to the building (record this as a repair expense)
h. The firm paid $250 for one-year subscriptions to ski magazines. None of the magazines have been received to date.
i. On March 31st, the firm purchases a machine for $10,000, freight of $675, and installation costs of $1,500
