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March 20 customer returned merchandise costing 1,050 that had been sold on account.
March 30 paid the following expense; advertising expense-2,000, salaries expense 3,000, utilities
expense- 1,300.
Purchases 7,500
Accounts Payable 7,500
Account Title: 101 Account Number: Cash
Date Particulars Post Debit Credit Debit Credit
March 1 50,000 50,000
March 2 5,000 45,000
March 5 15,000 30,000
March 9 500 29,500
March14 13,965 15,535
March 15 3,000 12,535
March 18 900 11,635
March 25 24,157 35,792
March 29 8,000 27,792
March 30 6,300 21,492
Cash 21,492
Accounts Receivable 5,250
Supplies 5,000
Merchandise Inventory 0
Equipment 15,000
Accounts Payable 7,500
L, Capita 50,000
L, Drawings 8,000
Sales 30,950
Sales returns and allowances 1,050
Sales discount 493
Purchases 23,000
Purchases return and allowance 1,250
Purchase discount 285
Freight In 500
Advertising Expense 2,000
Freight out 900
Salaries Expense 6,000
Utilities Expense 1,300
COGS
Beg. Inventory 0
Purchases 23,000
Less:
Purchase returns and allowances 1,250
Purchase discount 285
Net Purchases 21,465
Add: Freight In 500
Net cost of purchases 21,965
Goods available for sale 21,965
Less: Inventory, end 7,000
Cost of goods sold 14,965
Income Statement
Sales 30,950
Less:
Sales return and allowance 1,050
Sales discount 493
Net Sales 29,407
Less:
Cost of goods sold 14,965
Gross profit 14,442
Less: Expenses
Advertising 2,000
Freight 900
Salaries 6,000
Utilities 1,300
Net Income 4,242
Cash 21,492
Accounts Receivable 5,250
Supplies 5,000
Merchandise inventory 7,000
Equipment 15,000
Accounts Payable 7,500
L. Capital 46,242
ASSET
Current:
Cash 21,492
Accounts Receivable 5,250
Supplies 5,000
Merchandise inventory 7,000
Total Current Asset 38,742
Non-current Asset
Equipment 15,000
Total Asset 53,742
LIABILITIES
Current:
Accounts Payable 7,500
EQUITY
L, Capital 46,242
Total Liabilities and Equity 53,742
Sales 30,950
Sales Returns and allowances 1,050
Sales discount 493
Advertising Expense 2,000
Freight out 900
Salaries Expense 6,000
Utilities Expense 1,300
Income Summary 19,207
L, Capital 8,000
L, Drawings 8,000
March 20 customer returned merchandise amounting 1,050 (900 cost) that had been sold on
account.
March 30 paid the following expense; advertising expense-2,000, salaries expense 3,000, utilities
expense- 1,300.
Inventory 900
Cost of Goods Sold 900
Cash 21,492
Accounts Receivable 5,250
Supplies 5,000
Merchandise Inventory 7,500
Equipment 15,000
Accounts Payable 7,500
L, Capital 50,000
L, Drawings 8,000
Sales 30,950
Sales Returns and Allowances 1,050
Sales Discount 493
Cost of goods Sold 14,465
Advertising Expense 2,000
Freight out 900
Salaries Expense 6,000
Utilities Expense 1,300
Income Statement
Sales 30,950
Less:
Sales return and allowance 1,050
Sales discount 493
Net Sales 29,407
Less:
Cost of goods sold 14,465
Gross profit 14,942
Less: Expenses
Advertising 2,000
Freight 900
Salaries 6,000
Utilities 1,300
Net Income 4,742
Cash 21,492
Accounts Receivable 5,250
Supplies 5,000
Merchandise inventory 7,500
Equipment 15,000
Accounts Payable 7,500
L. Capital 46,742
ASSET
Current:
Cash 21,492
Accounts Receivable 5,250
Supplies 5,000
Merchandise inventory 7,500
Total Current Asset 39,242
Non-current Asset
Equipment 15,000
Total Asset 54,242
LIABILITIES
Current:
Accounts Payable 7,500
EQUITY
L, Capital 46,742
Total Liabilities and Equity 54,242
General Journal (GJ-J2)
Sales 30,950
Sales Returns and allowances 1,050
Sales discount 493
Advertising Expense 2,000
Freight out 900
Salaries Expense 6,000
Utilities Expense 1,300
Income Summary 19,207
L, Capital 8,000
L, Drawings 8,000