SOLUTION Problem 6-1

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

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Problem 6-1 Solution -- OverPriced Jeans, Inc. March Accounting Period General Journal Date Account Debit Credit Mar 01 Cash - Big Bank 40,000 Common Stock 40,000 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 45,000 Sales Revenue 45,000 Cost of Goods Sold 8,000 Inventory 8,000 Sell inventory to customer for cash Mar 15 Wages Expense 23,000 Cash - Little Bank 23,000 Pay wages Mar 16 Inventory 65,000 Accounts Payable 65,000 Purchase inventory on credit Mar 17 Accounts Receivable 100,000 Sales Revenue 100,000 Cost of Goods Sold 22,000 Inventory 22,000 Sell inventory to customer on credit
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General Journal Date Account Debit Credit Mar 20 Accounts Receivable 45,000 Cash - Little Bank 15,000 Sales Revenue 60,000 Cost of Goods Sold 12,000 Inventory 12,000 Mar 22 Inventory 25,000 Cash - Big Bank 25,000 Purchase inventory for cash Mar 26 Accounts Payable 32,500 Cash - Big Bank 32,500 Pay cash to vendor on account Mar 30 Wages Expense 23,000 Cash - Little Bank 23,000 Pay wages Mar 31 Interest Expense 400 Interest Payable - Big Bank
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SOLUTION Problem 6-1 - Problem 6-1 Solution - OverPriced...

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