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06 - SOLUTION Problem 6-1

06 - SOLUTION Problem 6-1 - Problem 6-1 Solution OverPriced...

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General Journal Date Account Debit Credit Mar 01 Cash - Big Bank 55,000 Common Stock 55,000 Issue additional common stock Mar 01 Note Payable - Little Bank 35,000 Cash - Big Bank 35,000 Pay-off Little Bank note Mar 01 Interest Payable - Little Bank 200 Cash - Big Bank 200 Pay February interest on Little Bank note Mar 01 Rent Expense 3,000 Cash - Big Bank 3,000 Pay March rent Mar 02 Cash - Big Bank 75,000 Accounts Receivable 75,000 Collect accounts receivable Mar 10 Cash - Little Bank 65,000 Sales Revenue 65,000 Cost of Goods Sold 12,000 Inventory 12,000 Sell inventory to customer for cash Mar 15 Wages Expense 26,000 Cash - Little Bank 26,000 Pay wages Mar 16 Inventory 70,000 Accounts Payable 70,000 Purchase inventory on credit Mar 17 Accounts Receivable 120,000 Sales Revenue 120,000 Cost of Goods Sold 27,000 Inventory 27,000 Sell inventory to customer on credit Problem 6-1 Solution -- OverPriced Jeans, Inc. March Accounting Period
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General Journal Date Account Debit Credit Mar 20 Accounts Receivable 55,000 Cash - Little Bank 15,000 Sales Revenue 70,000 Cost of Goods Sold 14,000 Inventory 14,000 Sell inventory to customer for cash & credit Mar 22 Inventory 30,000 Cash - Big Bank 30,000 Purchase inventory for cash Mar 26 Accounts Payable 35,000 Cash - Big Bank 35,000 Pay cash to vendor on account Mar 30 Wages Expense 25,000 Cash - Little Bank 25,000 Pay wages Mar 31 Interest Expense 600 Interest Payable - Big Bank 600
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