Solved

Dogwood Florist Just Opened for Business on March 1st

Question 26

Essay

Dogwood Florist just opened for business on March 1st.The following events happened on March 1st related to opening the business.
i) Paid $2,000 for two months rent.
ii) Paid $24,000 for a glass-door fridge to store the flowers in.It is expected to last 10 years.iii) Received $6,000 in flowers for inventory, to be paid for on April 15th.
iv) Received a down payment of $300 as a deposit on a wedding they were doing the flowers for.The wedding is on April 10th and the balance of $350 will be paid then.
v) Hired a part-time sales clerk at $8.50/hr to help on the weekends.By the end of the month she had worked 15 hours and been paid for 10 of them.
Required:
A) Using journal entries, record the events of March 1st.
B) Record any adjusting entries that would be necessary on March 31st for Dogwood's first financial statements.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions