JANUARY 2014

1
2
3
4
5

REVOLVING CAPITAL
DR
CR

NET INCOME
DR
CR

BORROWED STARTING CAPITAL

7,000.00

PURCHASES - JAN 2014

5,000.00

SALES - JAN 2014

2,000.00

OPERATING EXPENSES - JAN

4,500.00

RECORD ENDING INVENTORY

STATEMENT OF OPERATIONS
NeT Sales
Inventory Beg
Purchases
Inventory End
Cost of Sales
Gross Margin
Operating Expenses
Net Income

5,000.00
0
7,000.00
(4,500.00)
2,500.00
2,500.00
2,000.00
500.00

9,500.00

9,000.00
500.00

ACCOUNTS PAYABLE
DR
CR
10,000.00

CASH
DR
10,000.00

CR

ACCOUNTS RECEIVABLE
DR
CR

SALES
DR

7,000.00
5,000.00
2,000.00

10,000.00
10,000.00

15,000.00
6,000.00

9,000.00

SALES
CR

PURCHASES
DR
CR

OPERATING EXPENSES
DR
CR

INVENTORY
DR
CR

7,000.00
5,000.00
2,000.00
4,500.00

5,000.00
5,000.00

7,000.00
7,000.00

2,000.00
2,000.00

4,500.00

JANUARY 2014

1
2
3
4
5

REVOLVING CAPITAL
DR
CR

BORROWED STARTING CAPITAL

7,000.00

PURCHASES - JAN 2014

5,000.00

SALES - JAN 2014

2,000.00

OPERATING EXPENSES - JAN

2,000.00

RECORD ENDING INVENTORY

JOURNAL RNTRY
1
CASH

10000
10000

AP
TO RECORD BORRPWED FUND

PURCHASES

7000
7000

CASH
TO RECORD PURCHASES

CASH

5000
5000

SALES
TO RECORD SALES

NET INCOME
DR
CR

ECPENSES
CASH

INCOME STATEMENT
SALES 5000
PURCHASES 7000
END
2000
COST 5000
GROSS PROFIT0
EXPENSES 2000
NI
-2000

2000
2000

7,000.00

9,000.00
(2,000.00)

ACCOUNTS PAYABLE
DR
CR
10,000.00

CASH
DR
10,000.00

CR

ACCOUNTS RECEIVABLE
DR
CR

SALES
DR

7,000.00
5,000.00
2,000.00

10,000.00
10,000.00

15,000.00
6,000.00

9,000.00

SALES
CR

PURCHASES
DR
CR

OPERATING EXPENSES
DR
CR

7,000.00

INVENTORY
DR
CR
7,000.00

5,000.00
2,000.00

5,000.00
5,000.00

7,000.00
7,000.00

2,000.00
2,000.00

7,000.00