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Journal Entries for Fresh Market, Inc.

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The following transactions occurred for Fresh Market, Inc. for the quarter ended March 31, 2010:

·         Total sales were $ 484,500 - 20% were on account.
·         Of those sales on account, 95% were collected by the end of the quarter.
·         $ 258,000 was spent buying produce to stock the store.
·         By the end of the quarter, all but $ 6,060 of the produce has been sold.
·         Payments were made for the following:
1. Salaries and Wages $ 130,000
2. Utilities $ 8,835
3. Rent $ 13,950
4. Supplies $ 17,000
5. Equipment Repairs $ 4,410
6. Loan Payments - $ 4,500 on principal and $ 3,150 for interest
·         Depreciation on Store Fixtures and Equipment was $ 7,230.
·         An estimated income tax payment for $ 19,130 was made.
·         $ 1,940 in Supplies were unused at the end of the quarter.
·         Employees earned $ 2,100 in wages that won't be paid until the third day of the next quarter.

Please assist with the following:

1. Prepare the journal entries to reflect the above transactions.

2. Circle every account in the journal entry that is a Balance Sheet account.

3. Did the Cash account increase or decrease during the quarter? By how much?

4. Prepare an Income Statement for the Quarter ended March 31, 2009.

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Solution Summary

The attached, formatted Microsoft Excel spreadsheet contains detailed illustrations and instructions for completion of the journal entry assignment for the Fresh Market, Inc. exercise, including preparation of journal entries, balance sheet accounts, cash increases/decreases, and a company income statement.

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