Monmath Corp

question 64

Essay

Monmath Corp.started operations in March of Year 3.The following transactions occur during March.
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 $50,000 on a note from the bank to finance the purchase of a building.
c. Monmath buys $15,000 of inventory on account (this is the gross price before any possible discounts).
d. Monmath pays a $12,000 account payable with cash.
e. Monmath paid the annual rent of $11,760.
f. Monmath pays for one half of the inventory purchased in (c) above. There are no discounts given.
g. Issued 300 shares of $1 par value stock in settlement of $300 accounts payable.
h. Received $400 from a customer for merchandise to be delivered on April 15, Year 3.

Required:
Prepare the journal entries for transactions a through h, assuming Monmath uses the accrual basis of accounting.

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Definitions:

Labour Shortage

A situation in which employers experience difficulty finding employees with the required skills to fill their job vacancies.

Environmental Factors

Various external elements, including economic, social, political, and ecological influences, that can affect an organization’s operation.

HRM

Human Resource Management, the strategic approach to the effective management of people in an organization, focusing on policies and systems.

Environmental Scanners

Individuals or tools that continuously monitor an organization’s external and internal environment to detect early signs of opportunities and threats that may influence strategic planning.