SOLUTION Problem 5-1

SOLUTION Problem 5-1 - Problem 5-1 Solution - OverPriced...

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Problem 5-1 Solution -- OverPriced Jeans Closing Entires for February General Journal Date Account Debit Credit Feb 28 Sales Revenue 228,000 Retained Earnings 228,000 Close the revenue account Feb 28 Retained Earnings 84,575 Cost of Goods Sold 45,000 Rent Expense 3,000 Wages Expense 36,000 Interest Expense 575 Close the expense accounts
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Problem 5-1 Solution (continued) General Ledger Assets = Liabilities + Owners' Equity Cash Note Payable Common Dr. Big Bank Cr. Dr. Big Bank Cr. Dr. Stock Cr. Beg. Balance 40,000 Beg. Balance 75,000 Beg. Balance 50,000 Feb 01 3,000 Feb 04 53,000 Ending Balance 75,000 Ending Balance 50,000 Feb 22 14,000 Ending Balance 76,000 Note Payable Retained Dr. Little Bank Cr. Dr. Earnings Cr. Cash Beg. Balance 35,000 Beg. Balance 0 Dr. Little Bank Cr. Feb 28 228,000 Beg. Balance 20,000 Ending Balance 35,000 Feb 28 84,575 Feb 07 13,000 Ending Balance 143,425 Feb 18 30,000 Feb 27 23,000 Interest Payable Sales Ending Balance 14,000 Dr. Big Bank Cr. Dr. Revenue Cr. Beg. Balance
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SOLUTION Problem 5-1 - Problem 5-1 Solution - OverPriced...

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