As an example of how to journalize and post a transaction this transaction has

As an example of how to journalize and post a

This preview shows page 4 - 8 out of 18 pages.

(As an example of how to journalize and post a transaction -- this transaction has already been entered into the General Journal and posted to the General Ledger.) March 1 Pay off the $60,000 Note Payable owed to Little Bank. The cash to pay off the note is taken out of Big Bank. Also pay to Little Bank $450 for interest owed on the Note Payable for February. The $450 cash is also taken out of Big Bank. March 1 Take $7,300 cash out of Big Bank to pay for March's rent. March 2 The customer that purchased on credit on February 15 pays $88,000 cash to pay off the amount due. The cash is deposited into Big Bank. March 10 Sale of inventory to a customer -- selling price $69,250 -- cost of the inventory sold $22,750. The customer pays cash. The cash is deposited into Little Bank. March 15 Take $34,000 cash out of Little Bank to pay employees for wages they have earned. March 16 Purchase $84,750 of additional inventory. OPJ will pay the manufacturer 50% of the $84,750 in 10 days. OPJ will pay the remaining 50% in 30 days. March 17 Sale of inventory to a customer -- selling price $132,000 -- cost of the inventory sold $58,000. The customer will pay for the purchase in 30 days. March 20 Sale of inventory to a customer -- selling price $82,000 -- cost of the inventory sold $36,000. The customer pays $25,000 cash that is deposited into Little Bank. The customer will pay the remaining amount in 30 days. March 22 Purchase inventory for $44,000 cash. The cash is taken out of Big Bank. March 26 Pay the manufacturer the 50% due on the March 16th purchase of inventory. The cash is taken out of Big Bank. March 30 Take $32,250 cash out of Little Bank to pay employees for wages they have earned. Additional Information Note Payable Interest due to Big Bank on the Note Payable for the month of March is $580. As of March 31 Big Bank: OPJ owes Big Bank a total of $1,180 for interest ($600 for February + $580 for March). Interest will be paid to Big Bank in June. ü
Image of page 4

Subscribe to view the full document.

OverPriced Jeans, Inc. - Chart of Accounts Account # Account Name Assets: 100 Cash - Big Bank 105 Cash - Little Bank 110 Accounts Receivable 120 Inventory 150 Equipment Liabilities: 200 Accounts Payable 210 Note Payable - Big Bank 215 Note Payable - Little Bank 220 Interest Payable - Big Bank 225 Interest Payable - Little Bank Equity: 300 Common Stock 305 Retained Earnings Revenues: 400 Sales Revenue Expenses: 500 Cost of Goods Sold 510 Rent Expense 515 Wages Expense 520 Interest Expense
Image of page 5
wentong peng OverPriced Jeans, Inc. - General Journal 2019 Account Account Name Posted Debit Credit Month-Day Number 3-1 100 Cash - Big Bank X 55,000.00 300 Common Stock X 55,000.00 Issue additional Common Stock 3-1 215 Note payable-Little Bank X 60,000.00 225 Interest Payable-Little Bank X 450.00 100 Cash - Big Bank X 60,450.00 Pay off Note payable of Little Bank 3-1 510 Rent Expense X 7,300.00 100 Cash - Big Bank X 7,300.00 Pay rent 3-2 100 Cash - Big Bank X 88,000.00 110 Account Receivable X 88,000.00 Cash deposited into Big bank 3-10 105 Cash - Little Bank X 69,250.00 400 Sale Revenue X 69,250.00 500 Cost of Goods Sold X 22,750.00 120 Inventory X 22,750.00 Sale for cash 3-15 515 Wages Expense X 34,000.00 105 Cash - Little Bank X 34,000.00 Pay Wages 3-16 120 Inventory X 84,750.00 200 Account Payable X 84,750.00 Purchase inventory 3-17 110 Account Receivable X 132,000.00 400 Sale Revenue X 132,000.00 500 Costs of Goods Sold X 58,000.00 120 Inventory X 58,000.00 Sale on account Page # 1
Image of page 6

Subscribe to view the full document.

OverPriced Jeans, Inc.
Image of page 7
Image of page 8
  • Summer '14

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes