SOLUTION:

Journal Entries in the books of sava Reye

Date Particulars Debit

4-Jan Wages Payable $500.00

Wages Expenses $125.00
Cash
(To record wages expense.)

5-Jan Cash $25,000.00

S.Rey Capital
(To record investment in the business.)

7-Jan Merchandise Inventory $5,800.00

Accounts Payable
(To record purchase of inventory on account.)

9-Jan Cash $2,668.00

Gomez Co.
(To record cash receipt from client.)

11-Jan Alex Engineering $5,500.00

Computer Service Revenue
(To record services provided.)

13-Jan Liu Corp $5,200.00

Sales
(To record sales of goods.)

13-Jan Cost of goods sold $3,560.00

Merchandise Inventory
(To record the cost of goods sold.)

15-Jan Merchandise Inventory $600.00

Cash
(To record payment of freight expense on inventory.)

16-Jan Cash $4,000.00

Computer Service Revenue
(To record receipt of cash.)
17-Jan Accounts Payable $5,800.00
Cash
Merchandise Inventory
(To record payment of accounts payable.)

20-Jan Sales Return & Allowances $500.00

Liu Corp
(To record sales return.)

22-Jan Cash $4,653.00

Sales Discount $47.00
Liu Corp
(To record receipt of payment from customer.)

24-Jan No Entry

26-Jan Merchandise Inventory $9,000.00

Accounts Payable
(To record purchase of inventory.)

26-Jan KC Inc. $5,800.00

Sales
(To record sale of goods.)

26-Jan Cost of goods sold $4,640.00

Merchandise Inventory
(To record the cost of goods sold.)

29-Jan Accounts Payable $496.00

Merchandise Inventory
(To record return of defective goods.)

31-Jan Wages Expenses $1,250.00

Cash
(To record wages expense.)

1-Feb Prepaid Rent $2,475.00

Cash
(To record rent expense.)

3-Feb Accounts Payable $8,504.00

Cash
 Merchandise Inventory
(To record payment of accounts payable.)

5-Feb Advertising Expense $600.00

Cash
(To record advertising expense)

11-Feb Cash $5,500.00

Alex Engineering
(To record cash receipt from customer.)

15-Feb S.Rey, Withdrawals $4,800.00

Cash
(To record withdrawals.)

23-Feb Delta Inc. $3,220.00

Sales
(To record sale of goods.)

23-Feb Cost of goods sold $2,660.00

Merchandise Inventory
(To record the cost of goods sold.)

26-Feb Wages Expenses $1,000.00

Cash
(To record wages expense.)

27-Feb Mileage Expense $192.00

Cash
(To record mileage expense.)

8-Mar Computer Supplies $2,730.00

Accounts Payable
(To record purchase of office supplies.)

9-Mar Cash $3,220.00

Delta Co.
(To record cash receipt from customer.)

11-Mar Repair Expenses-Computer $960.00

Cash
(To record the repair expenses.)
16-Mar Cash $5,260.00
Computer Service Revenue
(To record cash receipt from customer.)

19-Mar Accounts Payable $3,830.00

Cash
(To record payment of accounts payable.)

24-Mar Easy Leasing $9,047.00

Computer Service Revenue
(To record the services provided.)

25-Mar Wildcat Service $2,800.00

Sales
(To record sale of goods.)

25-Mar Cost of goods sold $2,002.00

Merchandise Inventory
(To record the cost of goods sold.)

30-Mar IFM Company $2,220.00

Sales
(To record sale of goods.)

30-Mar Cost of goods sold $1,048.00

Merchandise Inventory
(To record the cost of goods sold.)

31-Mar Mileage Expense $128.00

Cash
(To record mileage expense.)
 Credit

$625.00

$25,000.00

$5,800.00

$2,668.00

$5,500.00

$5,200.00

$3,560.00

$600.00

$4,000.00
$5,742.00
$58.00

$500.00

$4,700.00

$9,000.00

$5,800.00

$4,640.00

$496.00

$1,250.00

$2,475.00

$8,418.96
 $85.04

$600.00

$5,500.00

$4,800.00

$3,220.00

$2,660.00

$1,000.00

$192.00

$2,730.00

$3,220.00

$960.00
$5,260.00

$3,830.00

$9,047.00

$2,800.00

$2,002.00

$2,220.00

$1,048.00

$128.00
 Journal Entries in the books of esd through sept

Date Particulars Debit Credit

4-Jan Wages Payable $44.00

Wages Expenses $44.00
Cash $64.00
(To record wages expense.)

5-Jan Cash $45,646.00

S.Rey Capital $45,646.00
(To record investment in the business.)

7-Jan Merchandise Inventory $46.00

Accounts Payable $46.00
(To record purchase of inventory on account.)

9-Jan Cash $66.00

Gomez Co. $66.00
(To record cash receipt from client.)

11-Jan Alex Engineering $89.00

Computer Service Revenue $89.00
(To record services provided.)
 Merchandise Inventory, 119

Date Particulars Debit Credit

1-Jan Balance
7-Jan Accounts Payable $5,800.00
13-Jan Cost of goods sold $3,560.00
15-Jan Cash $600.00
17-Jan Accounts Payable $58.00
26-Jan Accounts Payable $9,000.00
26-Jan Cost of goods sold $4,640.00
29-Jan Accounts Payable $496.00
3-Feb Accounts Payable $85.04
23-Feb Cost of goods sold $2,660.00
25-Mar Cost of goods sold $2,002.00
30-Mar Cost of goods sold $1,048.00
 Balance

$0.00
$5,800.00
$2,240.00
$2,840.00
$2,782.00
$11,782.00
$7,142.00
$6,646.00
$6,560.96
$3,900.96
$1,898.96
$850.96
 KCC Inc.

Date Particula Debit Credit Balance

1-Jan Balance $0.00

26-Jan Sales $353.00 $353.00

Dream Inc.

Date Particula Debit Credit Balance

1-Jan Balance $35.00 $0.00

 dw Co. 106.6w

Date Particula Debit Credit Balance

1-Jan Balance ###

9-Jan Cash $3,232.00 -$564.00

Delta Cero. 106.7

Date Particula Debit Credit Balance

1-Jan Balance $0.00

23-Feb Sales $2,423.00
9-Mar Cash $3,220.00 -$797.00
 wsa Corp

Date Particula Debit Credit Balance

1-Jan Balance $0.00

13-Jan Sales $343.00 $343.00
20-Jan Sales Return & Allow $500.00 -$157.00
22-Jan Cash $54.00 -$211.00
22-Jan Sales Discount $47.00 -$258.00
 IFM Co.

Date Particula Debit Credit Balance

1-Jan Balance $3,000.00

30-Mar Sales $534,543.00 $537,543.00
 Easy Leasing

Date Particula Debit Credit Balance

1-Jan Balance $0.00

24-Mar Computer $232.00 $232.00
 Service

Date Particula Debit Credit Balance

1-Jan Balance $0.00

25-Mar Sales $2,432.00 ###
 Engineering Co.

Date Particula Debit Credit Balance

1-Jan Balance $0.00

11-Jan Computer $5,678.00
11-Feb Cash $55.00 ###
 Cost of goods sold

Date Particula Debit Credit Balance

1-Jan Balance $0.00

13-Jan Merchandi$3,543.00 $3,543.00
26-Jan Merchandi$4,640.00 $8,183.00
23-Feb Merchandi$5,353.00 $13,536.00
25-Mar Merchandi $35.00 $13,571.00
30-Mar Merchandi $53.00 $13,624.00
 Sales returns and allowances

Date Particula Debit Credit Balance

1-Jan Balance $78.00 $0.00

20-Jan Liu Corp $500.00 $78.00

Sales discounts

Date Particula Debit Credit Balance

1-Jan Balance $0.00

22-Jan Liu Corp $787.00 $787.00
 Sales

Date Particula Debit Credit Balance

1-Jan Balance $353.00 $0.00

13-Jan Liu Corp $43.00 $43.00
26-Jan KC Inc. $53,454.00 $53,497.00
23-Feb Delta Inc. $3,220.00 $56,717.00
25-Mar Wildcat Service $3.00 $56,720.00
30-Mar IFM Company $33.00 $56,753.00
 Rent Expenses 6402

Date Particula Debit Credit Balance

1-Jan Balance $2,422.00 $0.00

Computer Supplies Expense 652

Date Particula Debit Credit Balance

1-Jan Balance $2,342.00 $0.00

 Depreciation Expense - Computer

Date Particula Debit Credit Balance

1-Jan Balance $45,343.00 $0.00

Insurance Expenses 6327

Date Particula Debit Credit Balance

343
1-Jan Balance $0.00
 Unearned Computer

Date Particula Debit Credit Balance

1-Jan Balance $8,767.00 $1,500.00

Depreciation Expense - Office Equipment 6127

Date Particula Debit Credit Balance

877
1-Jan Balance $7,878.00 $0.00
 Accumulated Depreciation

Date Particula Debit Credit Balance

1-Jan Balance $587.00

Wages Payable 2104

Date Particula Debit Credit Balance

1-Jan Balance $500.00

4-Jan Cash $87,887.00 ###
 Repair Expenses

Date Particula Debit Credit Balance

1-Jan Balance $0.00

11-Mar Cash $3,565.00 $3,565.00

Accumulated Depreciation

Date Particula Debit Credit Balance

1-Jan Balance $43,356.00

 Miscellaneous

Date Particula Debit Credit Balance

1-Jan Balance $88.00 $88.00

 Mileage

Date Particula Debit Credit Balance

1-Jan Balance $0.00

27-Feb Cash $857.00 $857.00
31-Mar Cash $85,787.00 ###
 Advertising

Date Particula Debit Credit Balance

1-Jan Balance $746.00 $0.00

5-Feb Cash $765.00 $765.00
 Expenses

Date Particula Debit Credit Balance

1-Jan Balance $0.00

4-Jan Cash $125.00 $242.00 -$117.00
31-Jan Cash ### $4,242.00 ###
26-Feb Cash $242.00 ###
 Computer Revenue 4035325

Date Particula Debit Credit Balance

1-Jan Balance $0.00

11-Jan Alex Engineering $979.00 $979.00
16-Jan Cash $79,779.00 ###
16-Mar Cash $9,797.00 ###
24-Mar Easy Leasing $9,047.00 ###
 S. Rey, Withdra33

Date Particula Debit Credit Balance

1-Jan Balance $0.00

15-Feb Cash $3,533.00 $35,335.00
 S. Rey, Capital 3013

Date Particula Debit Credit Balance

1-Jan Balance $803,603.00

 Accounts Payable 201234

Date Particula Debit Credit Balance

1-Jan Balance $1,100.00

7-Jan Merchandise Inventor $5,800.00 $242.00
17-Jan Cash $464.00 $242.00
17-Jan Merchandi $464.00 -$222.00
26-Jan Merchandise Inventor $9,000.00 $242.00
3-Feb Cash $464.00 $706.00
3-Feb Merchandise Inventor $85.04 $4,454.00
8-Mar Computer Supplies $464,564.00 ###
19-Mar Cash $464.00 ###
 Computer Equipment 167423

Date Particula Debit Credit Balance

1-Jan Balance $42,424.00

 Office Equipment 163

Date Particula Debit Credit Balance

1-Jan Balance $24,324.00

 Prepaid Rent 131

Date Particula Debit Credit Balance

1-Jan Balance $434.00

1-Feb Cash $23,423.00 $23,857.00
 Prepaid Insurance 12824

Date Particula Debit Credit Balance

1-Jan Balance $342.00

 Computer Supplies 126w

Date Particula Debit Credit Balance

1-Jan Balance $580.00

8-Mar Accounts $43,245.00 $43,825.00
 Cash 101

Date Particulars Debit Credit Balance

1-Jan Balance $42.00

4-Jan Wages Payable $2,582.00
4-Jan Wages Expenses
5-Jan S. Rey, Capital
9-Jan Gomez Co. $88.00
15-Jan Merchandise Inventory $858.00
16-Jan Computer Service Revenue $121.00
17-Jan Accounts Payable
22-Jan Liu Corp
31-Jan Wages Expenses
1-Feb Prepaid Rent $442.00
3-Feb Accounts Payable
5-Feb Advertising Expense
11-Feb Alex Engineering
15-Feb S.Rey, Withdrawals $88.00
26-Feb Wages Expenses
27-Feb Mileage Expense $8,528.00 $2,258.00
9-Mar Delta Inc.
11-Mar Repair Expenses-Computer $8,258.00
16-Mar Computer Service Revenue
19-Mar Accounts Payable $8,258.00
 Work Sheet in the books of Das

Account No. Particulars Unadjusted Trial Balance

Debit

101 Cash $8,258.00

119 Merchandise Inventory $850.96
126 Computer Supplies $43,825.00
128 Prepaid Insurance $342.00
131 Prepaid Rent $23,857.00
163 Office Equipment $24,324.00
167 Computer Equipment $42,424.00
201 Accounts Payable
301 S. Rey, Capital
302 S. Rey, Withdrawals $35,335.00
403 Computer Service Revenue
623 Wages Expense -$2,867.00
655 Advertising Expense $765.00
676 Mileage Expense $86,644.00
677 Miscellaneous Expense $88.00
684 Repairs Expense - Computer $3,565.00
164 Accumulated Depreciation - Office Equipment
168 Accumulated Depreciation - Computer Equipment
210 Wages Payable
236 Unearned Computer Service Revenue
612 Depreciation - Office Equipment $0.00
613 Depreciation - Computer Equipment $0.00
637 Insurance Expense $0.00
640 Rent Expense $0.00
652 Computer Supplies Expense $0.00
413 Sales
414 Sales returns and allowances $78.00
415 Sales discounts $787.00
502 Cost of goods sold $13,624.00
106.1 Alex's Engineering Co. $5,623.00
106.2 Wildcat Service $2,432.00
106.3 Easy Leasing $232.00
106.4 IFM Co. $537,543.00
106.5 Liu Corp -$258.00
106.6 Gomez Co. -$564.00
106.7 Delta Co. -$797.00
106.8 KC. Inc. $353.00
106.9 Dream. Inc. $0.00

Total $826,463.96
 in the books of Das

nadjusted Trial Balance Adjustments Adjusted Trial Balance

Credit Debit Credit Debit Credit

$8,258.00
$146.96 $704.00
### $2,005.00
$555.00 -$213.00
$2,475.00 $21,382.00
$24,324.00
$42,424.00
$469,482.00 $469,482.00
$803,603.00 $803,603.00
$35,335.00
$99,602.00 $99,602.00
$875.00 -$1,992.00
$765.00
$86,644.00
$88.00
$3,565.00
$43,356.00 $400.00 $43,756.00
$587.00 $1,250.00 $1,837.00
-$87,387.00 $875.00 -$86,512.00
$1,500.00 $1,500.00
$400.00 $400.00
$1,250.00 $1,250.00
$555.00 $555.00
$2,475.00 $2,475.00
### $41,820.00
$56,753.00 $56,753.00
$78.00
$787.00
$146.96 $13,770.96
$5,623.00
$2,432.00
$232.00
$537,543.00
-$258.00
-$564.00
-$797.00
$353.00
 $0.00

$1,387,496.00 ### ### $828,988.96 ###

Liabilities:

Accounts Payable $686.00

Wages Payable $68.00
Unearned Computer Service Revenue $1,500.00

Total Liabilities $2,254.00

Owner's Equity: -$35,051.00

Total Liabilities & Owner's Equity -$32,797.00

 Balance Sheet in the books

Particulars Amount

Assets:

Cash $8,258.00
Merchandise Inventory $4,232.00
Computer Supplies $2,005.00
Prepaid Insurance $24.00
Prepaid Rent $21,382.00
Accounts Receivable $64.00

Total Current Assets $35,965.00

Office Equipment $24,324.00

Accumulated Depreciation - Office Equipment $43,756.00 -$19,432.00
$4.00
Computer Equipment $42,424.00
Accumulated Depreciation - Computer Equipment $64.00 $42,360.00

Total Fixed Assets $22,928.00

Total Assets $58,893.00

Statement of Owner's Equity in

Particula Amount

S. Rey, Ca $282.00
S. Rey, W $35,335.00
Net Incom $2.00

S. Rey, Ca -$35,051.00
Income Statement in the books of wsd

Particula Amount

Computer Service Rev $99,602.00

Sales $2,432.00
Sales retu $78.00
Sales disc $42.00
Net Sales $2,312.00

Expenses:

Cost of go $44,528.00
Wages Ex -$1,992.00
Advertisi $44.00
Mileage E $86,644.00
Miscellan $5,858.00
Repairs E $423.00
Depreciat $588.00
Depreciat $1,250.00
Insurance $555.00
Rent Expe $2,475.00
Computer $4.00

Total Expenses $140,377.00

Net Income -$38,463.00

 Work Sheet in the books of wes

Account Particula
Unadjusted Trial Balance Adjustments Adjusted Trial Balance
Debit Credit Debit Credit Debit Credit

101 Cash $0.00 $0.00

119 Merchandi $32.00 $242.00 -$672.00 $704.00
126 Computer $0.00 -$2,005.00 $2,005.00
128 Prepaid In $3,232.00 $232.00 $22.00 $3,210.00
131 Prepaid R $242.00 $2,475.00 -$2,233.00
106.2 Wildcat S $0.00 $0.00
106.3 Easy Leas $32.00 $24.00 $56.00
106.4 IFM Co. $232.00 $24.00 $242.00 $256.00
106.5 Liu Corp $54.00 $54.00
106.6 Gomez Co $232.00 $232.00
106.7 Delta Co. $0.00 $0.00
106.8 KC. Inc. $0.00 $0.00
106.9 Dream. In $232.00 $232.00

Total $4,288.00 $0.00 $522.00 $62.00 $4,516.00 $0.00