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(Cash )

(1)
### 1,485.00
(2)
(9) 38,000.00 15,500.00
(4)
(11) 3,614.00 1,320.00
(5)
935.00
(6)
1,100.00
(7)
275.00
(8)
96,195.00 (12)
688.00 (15)
1,485.00 (17)
2,310.00 (18)
660.00 (20)
84,661.00 (END )
###
###

(Accounts Receivable )
(10) 14,850.00
3,614.00 (11)
11,236.00 (END )
###
###

(Prepaid Insurance )
(18) 2,310.00
192.50(AEJ 1 )
2,117.50 (END )
2,310.00 2,310.00

(Prepaid Rent )
(17) 1,485.00 1,485.00 (END )

(Furnitures and Fixtures )


(4)
###
### (END )

(Accounts Payable )
(12) 96,195.00
###
(END ) 92,345.00 49,940.00
1,100.00
###
###

(3)
(13)
(20)

(Merchandise Inventory )
(3)
### 38,140.00 (14)
(13) 49,940.00
### (END )
###
###

(Accumulated Depreciation )
(END )
129.17
129.17(AJE 2 )

(END )

(Accrued Expenses )
1,916.00
440.00
226.00

1,916.00

(Proprietor's Capital )
(END ) 69,909.33 65,000.00
(1)
4,909.33 (CE4 )
###
###

(CE2 )

(Sales )
52,850.00 38,000.00
14,850.00
###
###

(9)
(10)

(Rent Expense )
(2) 1,485.00 1,485.00 (CE 1 )

(16)
(19)

1,250.00 (AJE 3 )
1,916.00

(Bank Loan Payable )


(END )
###
### (1)

(14)

(5)
(20)

(Cost of Goods Sold )


###
### (CE3 )
(Adverstising Expense )
1,320.00
3,080.00 (CE1 )
1,760.00
3,080.00 3,080.00

(Wages Expense )
(6)
935.00 2,063.00 (CE1 )
(15)
688.00
(16)
440.00
2,063.00 2,063.00

(8)
(19)

(Utilities Expense )
275.00
501.00 (CE1 )
226.00
501.00
501.00

(Depreciation Expense )
(AJE 2 )
129.17
129.17 (CE1 )

(CE2 )

(Income Summary )
52,850.00 1,485.00
3,080.00
2,063.00
1,100.00
501.00
192.50
129.17
1,250.00
38,140.00
4,909.33
###
###

(CE1
(CE1
(CE1
(CE1
(CE1
(CE1
(CE1
(CE1
(CE3
(CE4

)
)
)
)
)
)
)
)
)
)

(Office Supplies Expense )


(7) 1,100.00 1,100.00 (CE1 )

(AEJ 1 )

(Insurance Expense )
192.50
192.50 (CE1 )

(Interest Expense )
(AJE 3 ) 1,250.00 1,250.00 (CE1 )

Number 2 and 3
9.)

(Debit )
38,000.00

Cash
Sales

10.)

11.)

38,000.00

Accounts Receivable
Sales

14,850.00
14,850.00

Cash

3,614.00
Accounts Receivables

12.)

3,614.00

Accounts Payable

96,195.00
Cash

13.)

96,195.00

Inventory

49,940.00
Accounts Payable

14.)

49,940.00

Cost of Goods Sold

38,140.00
Inventory

15.)

38,140.00

Wages Expense

688.00
Cash

16.)

688.00

Wages Expense

440.00
Accrued Salaries Payable

17.)

Prepaid Rent

440.00
1,485.00

Cash
18.)

Prepaid Insurance

1,485.00
2,310.00

Cash
19.)

Uitilities Expense

2,310.00
226.00

Accrued Expenses
20.)

Total

(Credit )

Advertising Expense
Cash
Accounts Payable

226.00
1,760.00
660.00
1,100.00
247,648.00

247,648.00

Number 4
Adjusting Entries

(Debit )

1.)

Insurance Expense
Prepaid Insurance

192.50

2.)

Depreciation Expense-FF
Accumulated Depreciation-FF

129.17

3.)

Interest Expense
Accrued Expenses

1,250.00

Number 5
Closing Entries
(Debit )
1. )

Income Summary
Rent Expense
Advertising Expense
Wages Expense
Office Supplies Expense
Utilities Expense
Interest Expense
Depreciation Expense
Insurance Expense

2.)

Sales

9,800.67

52,850.00
Income Summary

3.)

Income Summary
Cost of Goods Sold

38,140.00

4.)

Income Summary
Proprietor's Capital

4,909.33

107,271.67

(Credit )

192.5

129.17

1250

(Credit )

1,485.00
3,080.00
2,063.00
1,100.00
501.00
1,250.00
129.17
192.50

52,850.00

38,140.00

4,909.33

107,271.67

Number 6
PC DEPOT
BALANCE SHEET
SEPTEMBER 30, 20XX
ASSETS
Cash
Accounts Receivable
Inventory
Prepaid Rent
Prepaid Insurance
Total Current Assets
Furnitures and Fixtures
Accumulated Depreciation
Total Non-current Asset
Total Assets

84,661
11,236
149,300
1,485
2,118
248,800
15,500
(129)
15,371
264,170

LIABILITIES AND PROPRIETOR'S CAPITAL


Accounts Payable
Accrued Expense
Bank Loan Payable
Total Liabilities

92,345
1,916
100,000
194,261

Proprietor's Capital

69,909

Total Liabilities and Proprietor's Capital


Note: Amounts are rounded off

264,170

PC DEPOT
INCOME STATEMENT
FOR THE PERIOD ENDED SEPTEMBET 30, 20XX

Sales
Cost of Goods Sold
Gross Margin
Operating Expenses
Rent Expense
Advertising Expense
Wages Expense
Office Supplies Expense
Utilities Expense
Insurance Expense
Interest Expense
Depreciation Expense
Total Operating Expenses
Net Income
Note: Amounts are rounded off

52,850
38,140
14,710

1,485
3,080
2,063
1,100
501
193
1,250
129
9,801
4,909

Number 1
1. Initital Set-up of the company. The initial capital was funded by a bank loan at 15%
and initial outlay from the proprietor's own money.
2. The company paid its rent for the month of September.
3. Purchase of merchandise inventory on credit
4. Purchase of furnitures and fixtures by issuing cash
5. Payment of advertising expense for the month of September
6. Payment of wages of employees for the month of September
7. Purchase of office supplies expense
8. Payment of utilities (i.e. water and electricity) for the month September