JOURNAL ENTRIES

GENERAL JOURNAL - PAGE 01

Date Account Title / Explanation PR Debit Credit
1 Cash 110 39,000
Lopez, Capital 310 39,000
to record initial investment

2 Equipment 150 10,000

Cash 110 10,000
to record purchased of computer
equipment

2 Purchases 510 15,900

Accounts Payable 210 15,900
To records purchased of merchandise

3 Supplies 130 700

Cash 110 700
To record purchase of supplies

4 Accounts Receivable 120 15,200

Sales 410 15,200
To record sales on account

5 Freight Out 610 200

Cash 110 200
To record payment of freight on sales

6 Accounts Payable 210 300

Purchase Returns & Allowances 520 300
To record credit memo from Lowton

11 Accounts Payable 210 15,600

Purchase Discount 530 312
Cash 110 15,288
To record payment of accounts payable to Lowton

13 Cash 110 14,896

Sales Discount 430 304
Accounts Receivable 120 15,200
To record collections of Accounts Receivable

14 Purchases 510 14,400

Cash 110 14,400
To record purchased of merchandise

15 Salaries Expense 620 1,500

Cash 110 1,500
To record payment of salaries
 GENERAL JOURNAL - PAGE 02
Date Account Title / Explanation PR Debit Credit
Notes Payable 220 12,000
To record borrowed money from bank

17 Cash 110 500

Purchase Returns & Allowances 520 500
To record refund from supplier

18 Purchases 510 14,200

Accounts Payable 210 14,200
To record purchased of merchandise on account

20 Freight-In 540 700

Cash 110 700
To record freight on purchases

23 Cash 110 16,400

Sales 410 16,400
To record cash sales

26 Purchases 510 12,300

Cash 110 12,300
To record purchased of merchandise

27 Accounts Payable 210 9,000

Cash 110 9,000
To record partial payment to Mesda

28 Lopez, Drawings 320 2,008

Cash 110 2,008
To record withdrawals

29 Sales Returns & Allowance 420 900

Cash 110 900
To record withdrawals

30 Accounts Receivable 120 13,700

Sales 410 13,700
To record sales on account

30 Advertising Expense 630 1,000

Utilities Expense 650 400
Rent Expense 640 3,500
Salaries Expense 620 1,500
Cash 110 6,400
To record payment of various expenses
 GENERAL JOURNAL - PAGE 03
Date Account Title / Explanation PR Debit Credit
30 Merchandise Inventory 140 25,000
Income Summary 700 25,000
To recognize ending inventory

30 Sales 410 45,300

Sales Returns & Allowances 420 900
Sales Discount 430 304
Income Summary 700 44,096
To close sales accounts

30 Income Summary 700 56,388

Purchase Returns & Allowance 520 800
Purchase Discount 530 312
Purchases 510 56,800
Freight In 540 700
To close purchases accounts

30 Income Summary 700 8,100

Freight Out 610 200
Salaries Expense 620 3,000
Advertising Expense 630 1,000
Rent Expense 640 3,500
Utilities Expense 650 400
To close expense accounts

30 Income Summary 700 4,608

Lopez, Capital 310 4,608
To close income to capital accounts

30 Lopez, Capital 310 2,008

Lopez, Drawings 320 2,008
To close withdrawals to capital accounts
 GENERAL LEDGERS

Account 110 Cash

Balance
Date Description Post Debit Credit
Debit Credit
1 GJ1 39,000 39,000
2 GJ1 10,000 29,000
3 GJ1 700 28,300
5 GJ1 200 28,100
11 GJ1 15,288 12,812
13 GJ1 14,896 27,708
14 GJ1 14,400 13,308
15 GJ1 1,500 11,808
16 GJ2 12,000 23,808
17 GJ2 500 24,308
20 GJ2 700 23,608
23 GJ2 16,400 40,008
26 GJ2 12,300 27,708
27 GJ2 9,000 18,708
28 GJ2 2,008 16,700
29 GJ2 900 15,800
30 GJ2 6,400 9,400

Account 120 Accounts Receivable

Balance
Date Description Post Debit Credit
Debit Credit

4 GJ1 15,200 - 15,200

13 GJ2 - 15,200 -

30 GJ2 13,700 - 13,700

Account 130 Supplies

Balance
Date Description Post Debit Credit
Debit Credit

3 GJ1 700 700

Account 140 Merchandise Inventory

Balance
Date Description Post Debit Credit
Debit Credit

30 Closing Entries GJ 3 25,000 25,000

Account 150 Equipment

Balance
Date Description Post Debit Credit
Debit Credit

2 GJ1 10,000 10,000

Account 210 Accounts Payable
Balance
Date Description Post Debit Credit
Debit Credit

3 GJ1 - 15,900 15,900

6 GJ1 300 - 15,600

11 GJ1 15,600 - -

18 GJ2 - 14,200 14,200

27 GJ2 9,000 - 5,200

Account 220 Notes Payable

Balance
Date Description Post Debit Credit
Debit Credit

16 GJ2 - 12,000 12,000

Account 310 Lopez, Capital

Balance
Date Description Post Debit Credit
Debit Credit

1 GJ1 - 39,000 39,000

30 Closing Entries GJ2 - 4,608 43,608

30 Closing Entries GJ2 2,008 41,600

Account 320 Lopez, Drawings

Balance
Date Description Post Debit Credit
Debit Credit

28 GJ2 2,008 2,008

30 Closing Entries GJ2 2,008 -

Account 410 Sales

Balance
Date Description Post Debit Credit
Debit Credit

4 GJ1 - 15,200 15,200

23 GJ2 - 16,400 31,600

30 GJ2 - 13,700 45,300

30 Closing Entries GJ3 45,300 -

Account 420 Sales Returns & Allowances

Balance
Date Description Post Debit Credit
Debit Credit
29 GJ2
 900 - 900

30 Closing Entries GJ3 900 -

Account 430 Sales Discount

Balance
Date Description Post Debit Credit
Debit Credit

13 GJ1 304 - 304

30 Closing Entries GJ3 304 -

Account 510 Purchases

Balance
Date Description Post Debit Credit
Debit Credit

2 GJ1 15,900 - 15,900

14 GJ1 14,400 - 30,300

18 GJ2 14,200 - 44,500

26 GJ2 12,300 - 56,800

30 Closing Entries GJ3 - 56,800 -

Account 520 Purchase Returns & Allowances

Balance
Date Description Post Debit Credit
Debit Credit

6 GJ1 - 300 300

17 GJ2 - 500 800

30 Closing Entries GJ3 800 - -

Account 530 Purchase Discount

Balance
Date Description Post Debit Credit
Debit Credit

11 GJ1 - 312 312

30 Closing Entries GJ3 312 - -

Account 540 Freight In

Balance
Date Description Post Debit Credit
Debit Credit

20 GJ2 700 - 700

30 Closing Entries GJ3 - 700 -

Account 610 Freight Out
Balance
Date Description Post Debit Credit
Debit Credit

5 GJ1 200 - 200

30 Closing Entries GJ3 200 -

Account 620 Salaries Expense

Balance
Date Description Post Debit Credit
Debit Credit

15 GJ1 1,500 - 1,500

30 GJ2 1,500 - 3,000

30 Closing Entries GJ3 3,000 -

Account 630 Advertising Expense

Balance
Date Description Post Debit Credit
Debit Credit

30 GJ2 1,000 - 1,000

30 Closing Entries GJ3 1,000 -

Account 640 Rent Expense

Balance
Date Description Post Debit Credit
Debit Credit

30 GJ2 3,500 - 3,500

30 Closing Entries GJ3 3,500 - 3,500

Account 650 Utilities Expense

Balance
Date Description Post Debit Credit
Debit Credit

30 GJ2 400 - 400

30 Closing Entries GJ3 400 -

Account 700 Income Summary

Balance
Date Description Post Debit Credit
Debit Credit
30 Merchandise Inventory GJ3 25,000 25,000
30 To close income accounts GJ3 44,096 69,096
30 To close purchases accounts GJ3 56,388 12,708
30 To close expense accounts GJ3 8,100 4,608
30 To close NI to Capital accts GJ3 4,608 -
 LOPEZ FIESTA MART
Preliminary Trial Balance
April 30, 20XX

Aact
Debit Credit
No. Account Tittles

110 Cash 9,400 -

120 Accounts Receivable 13,700 -

130 Supplies 700 -

140 Merchandise Inventory -

150 Equipment 10,000 -

210 Accounts Payable - 5,200

220 Notes Payable - 12,000

310 Lopez, Capital - 39,000

320 Lopez, Drawings 2,008 -

410 Sales - 45,300

420 Sales Return & Allowances 900 -

430 Sales Discounts 304 -

510 Purchases 56,800 -

520 Purchase Returns & Allowances - 800

530 Purchase Discount - 312

540 Freight In 700 -

610 Freight Out 200 -

620 Salaries Expense 3,000 -

630 Advertising Expense 1,000 -

640 Rent Expense 3,500 -

650 Utilities Expense 400 -

601 Income Summary -

TOTALS 102,612 102,612

 LOPEZ FIESTA MART
Statement of Cost of Goods Sold
April 30, 20XX
Beginning Inventory -

Add: Purchases 56,800

Freight In 700 57,500

Total 57,500

Less: Purcahse Returns & Allowances 800

Purchase Discount 312 1,112

Net Purchases 56,388

Less: Ending Inventory 25,000

Cost of Goods Sold 31,388

STATEMENT OF FINANCIAL PERFORMANCE

Sales 45,300

Less: Sales Returns& Allowances 900

Sales Discount 304 1,204

Net Sales 44,096

Less: Cost of Goods Sold 31,388

Gross Profit 12,708

Less: Operating Expenses

Freight Out 200

Salaries Expense 3,000

Advertising Expense 1,000

Rent Expense 3,500

Utilities Expense 400 8,100

Net Income / (Loss) 4,608

STATEMENT OF CHANGES IN OWNER'S EQUITY

Lopez, Capital, Beginning -

Add: Initial Investments 39,000

Net Income 4,608

Total 43,608

Less: Lopez, Drawings 2,008

Lopez, Capital, End - 41,600

 LOPEZ FIESTA MART
STATEMENT OF FINANCIAL POSITION
April 30, 20XX

ASSETS
Current Assets
Cash 9,400

Accounts Receivable 13,700

Supplies 700

Merchandise Inventory 25,000

Non-Current Assets

Equipment 10,000

TOTAL ASSETS 58,800

LIABILITIES AND OWNER'S EQUITY

Current Liabilities:
Accounts Payable 5,200
Non-Current Liabilities:

Notes Payable 12,000

TOTAL LIABILITIES 17,200

Owner's Equity

Lopez, Capital 41,600

TOTAL LIABILITIES AND OWNER'S EQUITY 58,800

LOPEZ FIESTA MART

POST CLOSING TRIAL BALANCE
April 30, 20XX

Code Account Tittles Debit Credit

110 Cash 9,400

120 Accounts Receivable 3,700
120 Supplies 700
140 Merchandise Inventory 25,000
150 Equipment 10,000

210 Accounts Payable 5,200

220 Notes Payable 12,000
310 Lopez, Capital 41,600
TOTAL 58,800 58,800
 LOPEZ FIESTA MART
POST CLOSING TRIAL BALANCE
April 30, 20XX

Cash flow from Operating Activities

Collection from cash customers 16,400
Collection from credit customers 14,896
Refund from purchases 500
Payment of goods bought (50,988)
Freight on Purchases (700)
Payment of supplies (700)
Refund to customers (900)
Payment of Operating expenses (8,100)
Net Cash flow from Operating Activities (29,592)

Cash flow from Investing Activities

Equipment bought (10,000)
Sale of Equipment
Cash flow from Investing Activities (10,000)

Cash flow from Financing Activities

Investment of Capital 39,000
Withdrawal for personal use (2,008)
Borrowing from Bank 12,000
Net Cash flow from Financing Activities 48,992
INCREASE / (DECREASE) IN CASH 9,400