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Lizzie Incorporated General Journal

http://www.youtube.com/etramway http://freefinancialaccountingtextbook.blogspot.com/2011/06/chapter-3-analyzing-and-recording.html

JE#
1

Date

Account name/Description

Debit
100

Credit
100

1-Jan-10 Cash Common stock Sold common stock 30-Jun-10 Inventory Accounts payable Purchased inventory on account

18,839 18,839

1-Jul-10 Note payable Cash Sold 2 year note, interest payable annually at 10%

20,000 20,000

1-Jul-10 Property, plant and equipment Cash Purchased equipment with 5 year life, no residual value

5,800 5,800

1-Jul-10 Prepaid insurance Cash Purchased 1 year liability policy 31-Aug-10 Cash Accounts payable

750 750

14,050 14,050

Paid a portion of Accounts payable balance


7 30-Nov-10 Sales Accounts receivable Sold product on account 8 31-Dec-10 Cash 14,500 Accounts receivable Received partial payment on accounts receivable 21,000 21,000

14,500

31-Dec-10 Inventory Cost of goods sold Periodic inventory, physical count is zero

18,839 18,839

http://www.youtube.com/etramway DEA LOR Watch our Introduction to Financial Accounting video http://www.youtube.com/watch? v=l2mFEBrfRWw Watch our Financial Statements Preparation Video http://www.youtube.com/watch? v=LsOGkKbZvlg&feature=channel

Lizzie Incorporated General Ledger


http://www.youtube.com/etramway
http://freefinancialaccountingtextbook.blogspot.com/2011/06/chapter-3-analyzing-and-recording.html

Cash
1-1/1 3-7/1 4-7/1 5-7/1 6-8/31 8-12/31 14500 100 20000 5800 750 14050 1-1/1

Common Stock
100 2-6/30 9-12/31

Inventory
18839 18839

Balance 12/31

14000

Balance 12/31

100

Balance 12/31

Accounts payable
2-6/30 6-8/31 14050 18839 3-7/1

Note Payable
20000 4-7/1

Property, plant & equipment


5800

Balance 12/31

4789

Balance 12/31

20000

Balance 12/31

5800

Prepaid Insurance
5-7/1 750 7-11/30

Sales
21000 7-11/30 9-12/31

Accounts Receivable
21000 14500

Balance 12/31

750

Balance 12/31

21000

Balance 12/31

6500

Retained earnings

Dividends
8-12/31

Cost of goods sold


18839

Balance 12/31

Balance 12/31

Balance 12/31

18839

DEA LOR Watch our Introduction to Financial Accounting video http://www.youtube. com/watch? v=l2mFEBrfRWw

Watch our Financial Statements Preparation Video http://www.youtube. com/watch? v=LsOGkKbZvlg&feature=channel

http://www.youtube.com/etramway

Lizzie Incorporated List of Accounts balances at 12/31/2010 Amount


14,000 6,500 750 5,800 4,789 20,000 100 0 21,000 0 18,839 91,778

http://freefinancialaccountingtextbook.blogspot.com/2011/06/chapter-3-analyzing-and

Account name
Cash Accounts receivable Prepaid insurance Property, plant and equipment, net Accounts payable Long-term Notes Payable Common stock Retained earnings Sales Dividends Cost of goods sold Total

Account type
Asset-current Asset-current Asset-current Asset-non-current Liability-current Liability-non-current Owners' Equity Owners' Equity Revenue Dividends Expense

Debit or Credit
Debit Debit Debit Debit Credit Credit Credit Credit Credit Debit Debit

DEA

LOR

Watch our Introduction to Financial Accounting video http://www.youtube.com/watch?v=l2mFEBrfRWw Watch our Financial Statements Preparation Video http://www.youtube.com/watch? v=LsOGkKbZvlg&feature=channel

http://www.youtube.com/etramway

Lizzie Incorporated Trial Balance at 12/31/2010 Amount


14,000 6,500 750 5,800 4,789 20,000 100 0 21,000 0 18,839

http://freefinancialaccountingtextbook.blogspot.com/2011/06/chapter-3-ana

Account name
Cash Accounts receivable Prepaid insurance Property, plant and equipment, net Accounts payable Long-term debt Common stock Retained earnings Sales Dividends Cost of goods sold Total

Debit
14,000 6,500 750 5,800

Credit

4,789 20,000 100 0 21,000 0 18,839 45,889 45,889

DEA

LOR

Watch our Introduction to Financial Accounting video http://www.youtube.com/watch?v=l2mFEBrfRWw Watch our Financial Statements Preparation Video http://www.youtube.com/watch?v=LsOGkKbZvlg&feature=channel

http://www.youtube.com/etramway

Lizzie Incorporated Income Statement For the Year Ended 12/31/2010

Revenue (Net Sales) Cost of goods sold Net Income

http://freefinancialaccountingtextbook.blogspot.com/2011/06/chapter-3-analyzing-and-recording.html 21,000 18,839 2,161

DEA

LOR

Watch our Introduction to Financial Accounting video http://www.youtube.com/watch?v=l2mFEBrfRWw Watch our Financial Statements Preparation Video http://www.youtube.com/watch? v=LsOGkKbZvlg&feature=channel

http://www.youtube.com/etramway

Lizzie Incorporated Statement of Retained Earnings For the Year Ended 12/31/2010

Beginning Retained earnings Plus: Net Income Less: Dividends Ending Retained Earnings

http://freefinancialaccountingtextbook.blogspot.com/2011/06/chapter-3-analyzing-and-recording.html 0 2,161 0 2,161

DEA

LOR

Watch our Introduction to Financial Accounting video http://www.youtube.com/watch?v=l2mFEBrfRWw Watch our Financial Statements Preparation Video http://www.youtube.com/watch? v=LsOGkKbZvlg&feature=channel

http://www.youtube.com/etramway

Lizzie Incorporated Classified Balance Sheet at 12/31/2010


14,000 6,500 750 21,250 5,800 27,050

http://freefinancialaccountingtextbook.blogspot.com/2011/06/chapter-3-analyzing-and-record Assets Cash Accounts receivable Prepaid insurance Current Assets Property, plant and equipment, net Total Assets Liabilities Accounts payable Long-term debt Total Liabilities Stockholders' Equity Common stock Ending Retained earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 4,789 20,000 24,789

100 2,161 2,261

27,050

DEA LOR Watch our Introduction to Financial Accounting video http://www.youtube.com/watch? v=l2mFEBrfRWw Watch our Financial Statements Preparation Video

http://www.youtube.com/watch? v=LsOGkKbZvlg&feature=channel