During the past several months, you have decided to make some changes in your li

Question

During the past several months, you have decided to make some changes in your life. You have always wanted to open your own small business and have decided you finally will. You have decided you will open your own merchandising business on January 1, 2016.

During your planning for this Grand Opening, you made the following decisions for your business.

You will fund the opening of your business with a transfer from your personal bank account to the business bank account in the amount of $20,000 on Jan 1.

You have already signed a lease for a building for a monthly rent of $1000 and your first rental payment is due on Jan 1.

You will use a Perpetual inventory system and the LIFO method to account for your inventory.

You will sell your product to all customers on account. Your terms for all customers are 2/10, n/30.

To start out, you don’t plan on hiring any employees.

Assignment

Annual Income Statement, Statement of Owner’s Equity, and a Classified Balance Sheet, ledger, unadjusted trial balance, adjusting entries, adjusted trial balance, financial statements, closing entries, and post closing trial balance. Include a LIFO worksheet so costs can be traced back to their purchases.

ACCOUNT TITLE 1 Cash DEBIT CREDIT $20,000.00 Capital $20,000.00 1,000.00 1 Rent Cash 1,000.00 1 Office Equipment $10,000.00 Cash $10,000.00 1 Inventory $ 4,000.00 Accounts Payable $ 4,000.00 2 Accounts Recievable $ 3,000.00 Sales Revenue $ 3,000.00 2 Cost of goods sold $ 2,000.00 Inventory $ 2,000.00 5 Office Supplies $ 1,000.00 Cash 1,000.00 2,940.00 60.00 9 Cash Discount Accounts Recievable $ 3,000.00 12 Inventory $ 4,000.00 Accounts Payable $ 4,000.00 15 Accounts Payable $ 4,000.00 Cash $ 4,000.00 16 Accounts Receivable $ 1,500.00 Sales Revenue 1,500.00 16 Cost of goods sold $ 1,100.00 Inventory 1,100.00 19 Office Expense $ 250.00 Cash $ 250.00 20 Adverisement Expense $ 100.00 Cash $ 100.00 27 Cash $ 1,500.00 Accounts Receivable 1,500.00 29 Accounts Receivable 4,500.00 Sales Revenue 4,500.00 30 Cost of goods sold 3,300.00 Inventory 3,300.00 30 Miscellaneous Expense $ 100.00 Cash $ 100.00 31 Telephone Expense $ 150.00 Cash $ 150.00 31 Electricity Expense $ 200.00 Cash $200.00 31 Depreciation $ 83.33 Accumulated Depreciation $ 83.33 31 Cost of goods sold $250.00 Office Supplies $ 250.00

Explanation / Answer

Note: The question is very large, hence i prepared ledgers. Please post the remaining questions seperatel.

Ledgers Capital Cash Dr Cr Dr Cr Particulars Amount Particulars Amount Particulars Amount Particulars Amount By cash 20000 To capital 20000 By Rent 1000 To Accounts recceivable 2940 By Office equipment 10000 To Accounts recceivable 1500 By Office supplies 1000 By accounts payable 4000 By office expenses 250 By Advertaisment expenses 100 By Miscellenous expenses 100 By Telephone expenses 150 To balance c/d 20000 By Electricity expenses 200 Total 20000 Total 20000 By balance c/d 7640 Total 24440 Total 16800 Inventory Office supplies Dr Cr Dr Cr Particulars Amount Particulars Amount Particulars Amount Particulars Amount To Accounts payable 4000 By cost of goods sold 2000 To cash 1000 By cost of goods sold 250 To Accounts payable 4000 By cost of goods sold 1100 By cost of goods sold 3300 By balacnce C/d 1600 By balacnce C/d 750 Total 8000 Total 8000 Total 1000 Total 1000 Cost of goods sold Discount Dr Cr Dr Cr Particulars Amount Particulars Amount Particulars Amount Particulars Amount To inventory 2000 To Accounts recceivable 60 To inventory 1100 To inventory 3300 To office supplies 250 By p and L 6650 By p and L 60 Total 6650 Total 6650 Total 60 Total 60 Advertaisment expense Dr Cr Miscellonus expenses Particulars Amount Particulars Amount Dr Cr To cash 100 Particulars Amount Particulars Amount To cash 100 By p and L 100 By p and L 100 Total 100 Total 100 Total 100 Total 100 Depreciation expenses Accumulated espenses Dr Cr Dr Cr Particulars Amount Particulars Amount Particulars Amount Particulars Amount To accumulated espense 83.33 By depreciation 83.33 By p and L 83.33 By balance c/d 83.33 Total 83.33 Total 83.33 Total 0 Total 83.33 Rent Office equipment Dr Cr Dr Cr Particulars Amount Particulars Amount Particulars Amount Particulars Amount To cash 1000 To Cash 10000 By P and L 1000 By balance c/d 1000 Total 1000 Total 1000 Total 10000 Total 1000 Accounts receivable Sales Dr Cr Dr Cr Particulars Amount Particulars Amount Particulars Amount Particulars Amount To sales 3000 By cash 2940 By accounts receivable 3000 To sales 1500 By Discount 60 By accounts receivable 1500 To sales 4500 By cash 1500 By accounts receivable 4500 By balacnce C/d 4500 To p and l a/c 9000 Total 9000 Total 9000 Total 9000 Total 9000 Accounts payable Office expenses Dr Cr Dr Cr Particulars Amount Particulars Amount Particulars Amount Particulars Amount To cash 4000 By inventory 4000 To cash 250 By inventory 4000 To balance c/d 4000 By p and L 250 Total 8000 Total 8000 Total 250 Total 250 Electricity expenses Telephone expnss Dr Cr Dr Cr Particulars Amount Particulars Amount Particulars Amount Particulars Amount To cash 200 To cash 150 By p and L 200 By p and L 150 Total 200 Total 200 Total 150 Total 150

Note: The question is very large, hence i prepared ledgers. Please post the remaining questions seperatel.

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.