Garrison Company Has Provided You with the Following Information Relating

question 74

Essay

Garrison Company has provided you with the following information relating to four transactions during the month of March:
a. Garrison acquired $18,000 of office supplies for cash. Office supplies on hand at the beginning of March totaled $3,400, while $2,000 remained at the end of March.
b. Garrison pays salaries monthly on the 2nd day of the month. Salaries earned by employees in March totaled $56,000. Salaries owed on March 1 and paid on March 2 totaled $51,000.
c. Advance deposits on hand at the beginning of March for work orders to be completed in March and April for customers totaled $75,000. Work completed and delivered during March on those work orders was $35,000. No new advance deposits were received in March.
d. Garrison had uncollected account receivables at March 1 totaling $38,000. Collections during March totaled $136,000, which included the entire March 1 receivables balance. New, end-of March billings to customers who bought goods in March on account and will pay in April totaled $40,000.
Garrison records operating revenues and expenses on the cash basis during the month. Adjusting entries are recorded monthly, the books are closed at the end of each month, and appropriate reversing entries are prepared as the first entries of each new month.
Required:
For each of the four transaction information sets a-d), complete the t-accounts below showing
1) the appropriate March 1 balances
2) all changes to the accounts that would be posted during March, including adjusting and closing entries as are appropriate
3) all April 1 reversing entries

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Definitions:

National Securities Exchange

A securities exchange registered with the SEC, adhering to governmental standards and regulations for trading securities.

Substantially All

A term used in legal and finance contexts to indicate a majority or near-total portion of an asset, company's assets, or activity.

Approved

Officially accepted or sanctioned by an authoritative body, indicating compliance with specified requirements or standards.

Shareholders

Shareholders are individuals or entities that own one or more shares of stock in a corporation, making them partial owners of the company.