SOLUTION Problem 3-1

SOLUTION Problem 3-1 - Problem 3-1 Solution - OverPriced...

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Problem 3-1 Solution -- OverPriced Jeans, Inc. Rips-Off Its First Customers General Journal Date Account Debit Credit Feb 01 Retained Earnings 3,000 Cash - Big Bank 3,000 Pay Feb. rent Feb 04 Cash - Big Bank 53,000 Retained Earnings 53,000 Retained Earnings 10,000 Inventory 10,000 Sell inventory to customer for cash Feb 07 Retained Earnings 13,000 Cash - Little Bank 13,000 Pay wages Feb 15 Accounts Receivable 75,000 Retained Earnings 75,000 Retained Earnings 14,000 Inventory 14,000 Sell inventory to customer on credit Feb 18 Cash - Little Bank 30,000 Accounts Receivable 70,000 Retained Earnings 100,000 Retained Earnings 21,000 Inventory 21,000 Feb 22 Inventory 14,000 Cash - Big Bank 14,000 Purchase inventory for cash Feb 27 Retained Earnings 23,000 Cash - Little Bank 23,000 Pay wages Feb 28 Retained Earnings 375 Interest Payable - Big Bank 375 Accrue Interest due to Big Bank Feb 28 Retained Earnings 200 Interest Payable - Little Bank 200 Accrue Interest due to Little Bank
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This note was uploaded on 10/20/2011 for the course ACC 221 taught by Professor Wiegand during the Spring '08 term at Miami University.

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SOLUTION Problem 3-1 - Problem 3-1 Solution - OverPriced...

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