Journal Entries

Date Particulars Debit

1-Nov Cash 100000 Cash
A, Capital 100000 100000
30000
Equipment 72000 20000
Cash 72000

Prepaid insurance 24000

Cash 24000
Equipment
12 Purchases 30000 72000
Cash 30000

14 Cash 30000
Sales 30000
Prepaid insurance
1-Dec Notes receivable 24000 24000
Sales 24000

5 Purchases 4000
Accounts Payable 4000
Purchases
26 Accounts receivable 34000 30000
Sales 34000 4000

27 Accounts payable 2000

Cash 2000

29 Cash 20000
Accounts receivable 20000
 T- Accounts

Cash Sales Adjusting Entries

72000 30000
24000 24000 Bad Debt Expense 2000
30000 34000 Allowance for Doubtful Accounts
2000 88000
22000 salaries expense 20000
Notes receivable salaries payable
24000
Equipment depreciation expense 3000
24000 Accumulated depreciation

72000 insurance expense 4000

Accounts receivable prepaid insurance
34000 20000
Prepaid insurance Allowance for Doubtful Accounts 2000
14000 accounts receivable
accounts payable
24000 2000 4000 interest receivable 200
interest income
2000
Purchases Cost of Goods Sold 13000
A, Capital Merchandise Inventory
100000
34000
100000
 2000

20000

3000

4000

2000

200

13000
 A Merchandising
Worksheet
For the Year Ended Dec 32, 20x1

Unadjusted Trial Balance Adjustments

Account titles dr cr dr cr
cash 22000
merchandise inventory
equipment 72000
accounts receivable 14000
prepaid insurance 24000 4000
purchases 34000
notes receivable 24000
accounts payable 2000
A, capital 100000
sales 88000
190000 190000
adjustments
uncollectible accounts 2000
estimated uncollectible accounts 2000
salaries expense 20000
salaries payable 20000
depreciation expense 3000
accumulated depreciation 3000
insurance expense 4000
interest receivable 200
interest income 200
Total 29200 29200
Profit (Loss)
Total
erchandising
orksheet
Ended Dec 32, 20x1

Adjusted Trial Balance Income Statement Balance Sheet

dr cr dr cr dr cr
22000 22000
13000 21000
72000 72000
14000 14000
20000 20000
34000
24000 24000
2000 2000
100000 100000
88000 88000

2000 2000 2000

2000
20000 20000
20000 20000
3000 3000
3000 3000
4000 4000
200 200
200 200
215200 215200 42000 88200
46200 46200
88200 88200 173200 173200
 A Merchandising A Merchandising
Income Statement Balance Sheet
For the Year Ended Dec 31, 20x1 For the Year Ended Dec 31,20x1

Sales Revenue 88000 ASSETS

Less: Cost of Good Sold 13000 Cash
Gross Profit 75000 Accounts Receivable
Less: Operating expenses Merchandise Inventory
Salaries Expense 20000 Notes Receivable
Depreciation Expense 3000 Interest receivable
Insurance Expense 4000 Prepaid Insurance
Bad debt expense 2000 Equipment
Operating Income 46000 Total Assets
Add: Other Income
Interest Income 200 LIABILITIES AND OWNER'S EQU
Total Net Income 46200 Liabilities
Accounts payable
Salaries Payable
Total Liabilities
Owner's Equity
Total Liabilities and Owner's Equity
 A Merchandising Closing Entries
Balance Sheet
he Year Ended Dec 31,20x1
31-Dec Merchandise Inventory
Sales
22000 Income Summary
12000
dise Inventory 21000 Income Summary
24000 Purchases
200 Salaries Expense
20000 Depreciation Expense
69000 Insurance Expense
168200 Bad debt expense

LIABILITIES AND OWNER'S EQUITY Income Summary

A, Capital
2000
20000
22000 Reversing Entries
146200
ilities and Owner's Equity 168200 Jan 1, 20x2 Salaries Payable
Salaries expense

Interest Income
Interest Receivable

Insurance Expense
Prepaid Insurance
21000
88000
109000

63000
34000
20000
3000
4000
2000

46200
46200

20000
20000

200
200

2000
2000