Response to the following problem:
Wheaton Wholesalers Inc. was incorporated on March 1, 2016 to operate a merchandizing business. All its sales on account are made according to the following terms: 2/10, n30.
Mar. 1 Issued share capital for $410,000 cash to Michael Wheaton, the incorporator and sole = shareholder of the corporation
1 Paid Scotia Fixtures Inc. $4,000 for equipment, with an estimated useful life of 10 years
1 Purchased $2,100 of merchandize on account from Midlife Stores Corp. for terms 2/10, n30
2 Sold merchandize on account to Timmins Centres Ltd. For $2,000 (cost to Wheaton: $1,500)
2 Collected $300 for a cash sale made today to Clayton David Inc. (cost: $20)
3 Purchased $500 of merchandize on account from Speedy Sales Co. for terms 1/10, n30
4 Sold merchandize on account to Northern Warehouse for $2,500
4 Timmins Centres Ltd. returned $200 of merchandize. (cost: $120)
5 Purchased $1,400 of merchandize on account from St Jean Wholesalers Corp. on account for terms n30
6 Received notification from Midlife Stores Corp. that $100 of defective merchandize included in the March 1 purchase and subsequently returned to Midlife did not need to be paid
6 Sold merchandize on account to Sault Rapids Corp. for $1,500 (cost: $900)
7 Purchased $600 of merchandize on account from Trent Stores Corporation for terms 2/15, n30
8 Received the amount due from Timmins Centres Ltd. (less adjustment, less discount)
10 Paid Speedy Sales Co. for the March 3 purchase (less discount)
11 Received $7,500 from the Second National Bank as a demand bank loan
12 Paid Peace Realty Corp. $1,000 for 2 months' rent, March and April (recorded as an asset)
12 Sold merchandize on account to James Bay Distributors Inc. for $700 (cost: $400)
13 Received the amount due from Northern Warehouse (less discount)
15 Paid Mitch Michaels $350 for commissions earned to date (recorded as Commissions Expense
15 Paid Midlife Stores Corporation $1,000 on account
15 Purchased $1,000 of merchandize on account from Lilydale Products Ltd. for terms 2/15, n30
18 Paid Trent Stores Corporation for half of the March 7 purchase (less discount on payment)
19 Collected $100 for a cash sale made today to Margaret Smith(Cost: $70)
20 Purchased $1,200 of merchandize on account from Delta Centres Inc. for terms n30
20 Paid $400 for a cash purchase from Copeland Distributors Inc.
20 Sold merchandize on account to Amigo Inc. (cost: $350) for $600
21 Paid St Jean Wholesalers Corp. $700 on account
22 Received $500 on account from Sault Rapids Inc.
23 Paid Tri City Insurance Ltd. $2,400 for a 1-year insurance policy, effective March 1 (recorded as an = asset)
24 Paid $300 for a cash purchase from Buster's Emporium (debited Purchases)
25 Sold merchandize on account to Pinehurst Novelties Inc. for $1,400 (cost: $1,100)
26 Purchased $700 of merchandize on account from Tres Bon Markets Ltd. for terms 2/10, n30
30 Paid Shelby Corp. $500 for deliveries to customers
30 Paid Mitch Michaels $400 for commissions earned to date
30 Paid PhoneU $75 for the monthly telephone bill
30 Paid Vision Visuals Ltd. $250 for advertizing materials used during the month
The company uses the perpetual inventory system, Assume ending inventory was counted on March 31 and valued at $1,500.
Required:
Prepare journal entries to record the March transactions, including adjusting entries for insurance and rent. Include general ledger account numbers and a brief description for each entry.