General Journal General Journal

Date Accounts Debit (Credit) Date Accounts Debit

1/1 Inventory Asset 2,897 1/12 Accounts Receivable 431
Owners Equity (2,897) Merchandise Sales
Sales Tax Payable
1/1 Accounts Receivable 20,500
Owners Equity (20,500) Cost of Goods Sold 328
Inventory Asset
1/1 Owners Equity 15,000
Accounts Payable (15,000) 1/12 Accounts Receivable 399
Merchandise Sales
1/1 Checking 25,000 Sales Tax Payable
Furniture & Equipment 75,000
Visa (1,000) Cost of Goods Sold 304
Loan Payable - Long Term (22,000) Inventory Asset
Owners Equity (77,000)
1/12 Undeposited Funds 5,000
1/10 Checking 65,000 Accounts Receivable
Owners Equity (65,000)
1/12 Undeposited Funds 7,500
1/10 Checking 50,000 Accounts Receivable
Loan Payable - Long Term (50,000)
1/12 Undeposited Funds 8,000
1/4 Short-Term Investments 12,000 Accounts Receivable
Checking (12,000)
1/16 Undeposited Funds 420
1/9 Furniture & Equipment 16,000 Merchandise Sales
Checking (16,000) Sales Tax Payable

1/11 Furniture & Equipment 7,000 Cost of Goods Sold 320

Checking (7,000) Inventory Asset
l General Journal General Journal
(Credit) Date Accounts Debit (Credit) Date Accounts
1/16 Undeposited Funds 208 1/28 Undeposited Funds
(410) Service (208) Accounts Receivable
(21)
1/17 Checking 628 1/28 Undeposited Funds
Undeposited Funds (628) Accounts Receivable
(328)
1/17 Checking 20,500 1/28 Checking
Undeposited Funds (20,500) Undeposited Funds
(380)
(19) 1/25 Inventory Asset 400 1/28 Prepaid Insurance
Checking (400) Checking

(304) 1/25 Inventory Asset 598 1/28 Office Supplies

Checking (598) Checking

(5,000) 1/25 Accounts Receivable 525 1/28 Utilities

Merchandise Sales (500) Checking
Sales Tax Payable (25)
(7,500) 1/28 Telephone Expense
1/25 Cost of Goods Sold 400 Checking
Inventory Asset (400)
(8,000) 1/28 Accounts Payable
1/25 Accounts Receivable 816 Checking
Merchandise Sales (777)
(400) Sales Tax Payable (39) 1/31 Payroll Expenses
(20) Payroll Liability
Cost of Goods Sold 598 Checking
Inventory Asset (598)
(320) Payroll Expenses
Payroll Liability
Checking

Payroll Expenses
Payroll Liability
eral Journal General Journal
Debit (Credit) Date Accounts Debit (Credit)
431 1/31 Undeposited Funds 300
(431) Service (300)

525
(525)

956
(956)

11,000
(11,000)

500
(500)

620
(620)

360
(360)

15,000
(15,000)

4,583
(1,044)
(3,539)

800
(170)
(630)

384
(384)
 Owner's
Assets = Liabilities + Equity
218,897 = 74,721 + 144,175
218,897
Accounts Trial Balance General Ledger General Le
Checking 94,437 Checking Accounts Receivable
Accounts Receivable 1,215 Debit Credit Balance Debit Credit
Inventory Asset 1,945 Beginning Balance 0 Beginning Balance
Prepaid Insurance 11,000 25,000 25,000 20,500
Short-Term Investments 12,000 65,000 90,000 431
Undeposited Funds 300 50,000 140,000 399
Accumulated Depreciation 0 (12,000) 128,000 (5,000)
Furniture & Equipment 98,000 (16,000) 112,000 (7,500)
Accounts Payable 0 (7,000) 105,000 (8,000)
Visa (1,000) 628 105,628 525
Interest Payable 0 20,500 126,128 816
Loan Payable - Current 0 (400) 125,728 (431)
Payroll Liability (1,598) (598) 125,130 (525)
Sales Tax Payable (123) 956 126,086
Unearned Revenue 0 (11,000) 115,086
Loan Payable - Long Term (72,000) (500) 114,586
Owners Draw 0 (620) 113,966 Inventory Asset
Owners Equity (150,397) (360) 113,606 Debit Credit
Merchandise Sales (2,467) (15,000) 98,606 Beginning Balance
Rent Music Equipment 0 (3,539) 95,067 2,897
Service (508) (630) 94,437 (328)
Cost of Goods Sold 1,950 94,437 (304)
Bank Service Charges 0 94,437 (320)
Depreciation Expense 0 94,437 400
Insurance Expense 0 94,437 598
Interest Expense 0 94,437 (400)
Internet Expense 0 94,437 (598)
Misc. Expense 0 94,437
Office Supplies 500 94,437
Payroll Expenses 5,767 94,437
Telephone Expense 360 94,437
Utilities 620 94,437
Interest Income 0 94,437
Total Debits - Total (credits) 0
Net Income 6,222
l Ledger General Ledger General Ledger General Ledger General Ledger General Ledger Genera
counts Receivable Prepaid Insurance Furniture & Equipment Loan Payable - Current
Balance Debit Credit Balance Debit Credit Balance Debit Credit
0 Beginning Balance 0 Beginning Balance 0 Beginning Balance
20,500 11,000 11,000 75,000 75,000
20,931 11,000 16,000 91,000
21,330 11,000 7,000 98,000
16,330
8,830 Short-Term Investments Accounts Payable
830 Debit Credit Balance Debit Credit Balance Payroll Liability
1,355 Beginning Balance 0 Beginning Balance 0 Debit Credit
2,171 12,000 12,000 (15,000) (15,000) Beginning Balance
1,740 12,000 15,000 0 (1,044)
1,215 12,000 0 (170)
1,215 0 (384)
1,215 Undeposited Funds 0
Debit Credit Balance 0
Inventory Asset Beginning Balance 0 0
Balance 5,000 5,000 0 Sales Tax Payable
0 7,500 12,500 0 Debit Credit
2,897 8,000 20,500 0 Beginning Balance
2,569 420 20,920 0 (21)
2,265 208 21,128 (19)
1,945 (628) 20,500 Visa (20)
2,345 (20,500) 0 Debit Credit Balance (25)
2,943 431 431 Beginning Balance 0 (39)
2,543 525 956 (1,000) (1,000)
1,945 (956) (1) (1,000)
1,945 300 300
1,945 Interest Payable Unearned Revenue
1,945 Accumulated Depreciation Debit Credit Balance Debit Credit
1,945 Debit Credit Balance Beginning Balance 0 Beginning Balance
1,945 Beginning Balance 0 0
1,945 0 0
0 0
0 0
neral Ledger General Ledger General Ledger General Ledger General Ledger General Ledger
n Payable - Current Loan Payable - Long Term Service Depreciation Expense
Balance Debit Credit Balance Debit Credit Balance Debit Credit
0 Beginning Balance 0 Beginning Balance 0 Beginning Balance
0 (22,000) (22,000) (208) (208)
0 (50,000) (72,000) (300) (508)
0 (72,000) (508)
0 (508)
Owners Draw (508) Insurance Expense
Payroll Liability Debit Credit Balance (508) Debit Credit
Balance Beginning Balance 0 (508) Beginning Balance
0 0 (508)
(1,044) (508)
(1,214) Owners Equity (508)
(1,598) Debit Credit Balance
(1,598) Beginning Balance 0 Cost of Goods Sold Interest Expense
(1,598) (2,897) (2,897) Debit Credit Balance Debit Credit
(20,500) (23,397) Beginning Balance 0 Beginning Balance
ales Tax Payable 15,000 (8,397) 328 328
Balance (77,000) (85,397) 304 632
0 (65,000) (150,397) 320 952
(21) 400 1,352
(40) Merchandise Sales 598 1,950 Internet Expense
(60) Debit Credit Balance 1,950 Debit Credit
(85) Beginning Balance 0 1,950 Beginning Balance
(123) (410) (410) 1,950
(123) (380) (790) 1,950
(123) (400) (1,190) 1,950
(500) (1,690) 1,950
nearned Revenue (777) (2,467) 1,950 Misc. Expense
Balance (2,467) 1,950 Debit Credit
0 (2,467) Beginning Balance
0 Bank Service Charges
0 Rent Music Equipment Debit Credit Balance
Debit Credit Balance Beginning Balance 0
Beginning Balance 0 0
0 0
0
 Balance Sheet
Assets
Current assets:
General Ledger Cash 94,437
preciation Expense Office Supplies Accounts Receivable 1,215
Balance Debit Credit Balance Inventory Asset 1,945
0 Beginning Balance 0 Prepaid Insurance 11,000
0 500 500 Short-Term Investments 12,000
0 500 Undeposited Funds 300
0 500 Total current assets 120,897
Property Plant & Equipment:
nsurance Expense Payroll Expenses Furniture & Equipment 98,000
Balance Debit Credit Balance Less: Accumulated Depreciation 0
0 Beginning Balance 0 Total Property Plant & Equipment 98,000
0 4,583 4,583
0 800 5,383
0 384 5,767 Total Assets 218,897
5,767
nterest Expense 5,767 Income Statement
Balance Revenue:
0 Telephone Expense Merchandise Sales 2,467
0 Debit Credit Balance Rent Music Equipment 0
0 Beginning Balance 0 Service 508
0 360 360 Total revenue 2,975
360 Cost of Goods Sold 1,950
nternet Expense 360 Gross Profit 1,025
Balance Expenses:
0 Utilities Bank Service Charges 0
0 Debit Credit Balance Depreciation Expense 0
0 Beginning Balance 0 Insurance Expense 0
0 620 620 Interest Expense 0
620 Internet Expense 0
Misc. Expense 620 Misc. Expense 0
Balance Office Supplies 500
0 Interest Income Payroll Expenses 5,767
0 Debit Credit Balance Telephone Expense 360
0 Beginning Balance 0 Utilities 620
0 0 Total expenses 7,247
0 Net Ordinary Income (6,222)
0 Other Income/Expense:
 Interest Income 0
Net Income (Loss) (6,222)

Statement of Owner's Equity

Beginning Owner's Equity 85,397
Owner Investment 65,000
Net Income (Loss) (6,222)
Draws 0
Net increase 58,778
Ending Owner's Equity 144,175

Net Income (loss) (6,222)

Draws 0
Net decrease 58,778
Ending Owner's Equity 144,175
Balance Sheet
Liabilities ELP Purchases
Current Liabilities:
Date Quantity
Accounts Payable 0
Credit card 1,000 1-Jan
Interest Payable 0 25-Jan 1
Loan Payable - Current 0
Payroll Liability 1,598 25-Jan
Sales Tax Payable 123
Unearned Revenue 0
Total Current Liabilities 2,721
Loan Payable - Long Term 72,000
Total Liabilities 74,721
Equity:
Owners Equity 144,175

Total Liabilities & Equity 218,897 ENLPBUNH3 Purchases

Date Quantity
1-Jan

ERP93 Purchases

Date Quantity
1-Jan

GTPROBK1 Purchases
Date Quantity
1-Jan

GUSAM2 Purchases

Date Quantity
1-Jan

WILDKAT Purchases

Date Quantity
1-Jan

GSB Purchases

Date Quantity
25-Jan 1
25-Jan
Purchases Cost of Merchandise Sold Inventory Accounts Receiva
Unit Total Unit Total Unit Total Anderson Guitars
Cost Cost Quantity Cost Cost Quantity Cost Cost
Debit
1 $400 $400 Beginning Balance
400 $400 1 $400 $400 5,000
2 $400 $800 431
1 400 $400 1 $400 $400

Smith Guitars
Debit
Beginning Balance
8,000

Purchases Cost of Merchandise Sold Inventory

Unit Total Unit Total Unit Total Music Stuff Store
Cost Cost Quantity Cost Cost Quantity Cost Cost Debit
### 1 $480 $480 Beginning Balance
816

Sam The Guitar Man

Debit
Beginning Balance
Purchases Cost of Merchandise Sold Inventory
Unit Total Unit Total Unit Total
Cost Cost Quantity Cost Cost Quantity Cost Cost
1 $440 $440
Job 4002 Sam The Guitar M
Debit
Beginning Balance

Purchases Cost of Merchandise Sold Inventory

Unit Total Unit Total Unit Total Total AR subsidiary ledger b
 Cost Cost Quantity Cost Cost Quantity Cost Cost
1 $328 $328
1 328 $328 0 $328 $0

Purchases Cost of Merchandise Sold Inventory

Unit Total Unit Total Unit Total
Cost Cost Quantity Cost Cost Quantity Cost Cost
2 $304 $608
1 304 $304 1 $304 $304

Purchases Cost of Merchandise Sold Inventory

Unit Total Unit Total Unit Total
Cost Cost Quantity Cost Cost Quantity Cost Cost
2 $320 $640
1 320 $320 1 $320 $320

Purchases Cost of Merchandise Sold Inventory

Unit Total Unit Total Unit Total
Cost Cost Quantity Cost Cost Quantity Cost Cost
598 $598 1 $598 $598
1 598 $598 0 $598 $0
Total $1,944
 Accounts Receivable Subsidiary Ledger By Customer Accounts Payable Subsidiary Ledger
Anderson Guitars Jones Guitars Accounts Receivable Subsidiary Ledger balance
Credit Balance Debit Credit Balance Epiphone
Beginning Balance 0 Beginning Balance 0 Debit Credit Balance Debit
5,000 7,500 7,500 Beginning Balance 0 Beginning Balance
5,431 399 7,899 (15,000) (15,000)
(5,000) 431 (7,500) 399 15,000 0
(431) 0 399 0

Smith Guitars Job 3005 Jones

Credit Balance Debit Credit Balance Debit Credit Balance
Beginning Balance 0 Beginning Balance 0 Beginning Balance 0
8,000 0 0 0
(8,000) 0 0 0
0 0
0
Music Stuff Store Eric Misic
Credit Balance Debit Credit Balance
Beginning Balance 0 Beginning Balance 0
816 525 525
816 (525) 0
816 0

Sam The Guitar Man

Credit Balance
Beginning Balance 0
0
0
0

Job 4002 Sam The Guitar Man

Credit Balance
Beginning Balance 0
0
0
0

Total AR subsidiary ledger by customer 1,215

ubsidiary Ledger Payroll Register 01/01 01/31
0 Exployee
Name Total Social Income Net
Credit Balance Earnings Secutity Medicare Tax Pay
Beginning Balance 0 Adam Hamulton 4,583 258 66 720 3,539
0 Erica 800 49 11 110 630
0 Total 5,383 307 77 830 4,169
 Employer
Social
Secutity Medicare
258 66
49 11
307 77
Closing Entries
General Journal
Date Accounts Debit (Credit) Accounts Trial Balance
Checking 94,437
Accounts Receivable 1,215
Inventory Asset 1,945
Prepaid Insurance 11,000
Short-Term Investments 12,000
Undeposited Funds 300
Accumulated Depreciation 0
Furniture & Equipment 98,000
Accounts Payable 0
Visa (1,000)
Interest Payable 0
Loan Payable - Current 0
Payroll Liability (1,598)
Sales Tax Payable (123)
Unearned Revenue 0
Loan Payable - Long Term (72,000)
Owners Draw 0
Owners Equity (150,397)
Income Summary 0
Merchandise Sales (2,467)
Rent Music Equipment 0
Service (508)
Cost of Goods Sold 1,950
Bank Service Charges 0
Depreciation Expense 0
Insurance Expense 0
Interest Expense 0
Internet Expense 0
Misc. Expense 0
Office Supplies 500
Payroll Expenses 5,767
Telephone Expense 360
Utilities 620
Interest Income 0
Total Debits - Total (credits) 0
Net Income 6,222
Closing Post Closing
Entries Trial Balance
94,437
1,215
1,945
11,000
12,000
300
0
98,000
0
(1,000)
0
0
(1,598)
(123)
0
(72,000)
0
(150,397)
0
(2,467)
0
(508)
1,950
0
0
0
0
0
0
500
5,767
360
620
0
0 0
0 6,222
Closing Entries
General Journal
Date Accounts Debit (Credit) Accounts Trial Balance
Checking 94,437
Accounts Receivable 1,215
Inventory Asset 1,945
Prepaid Insurance 11,000
Short-Term Investments 12,000
Undeposited Funds 300
Accumulated Depreciation 0
Furniture & Equipment 98,000
Accounts Payable 0
Visa (1,000)
1/31 Merchandise Sales 2,467 Interest Payable 0
Service 508 Loan Payable - Current 0
Income Summary (2,975) Payroll Liability (1,598)
Sales Tax Payable (123)
1/31 Income Summary 9,197 Unearned Revenue 0
Cost of Goods Sold (1,950) Loan Payable - Long Term (72,000)
Office Supplies (500) Owners Draw 0
Payroll Expenses (5,767) Owners Equity (150,397)
Telephone Expense (360) Income Summary 0
Utilities (620) Merchandise Sales (2,467)
Rent Music Equipment 0
1/31 Owners Equity 6,222 Service (508)
Income Summary (6,222) Cost of Goods Sold 1,950
Bank Service Charges 0
1/31 Depreciation Expense 0
Insurance Expense 0
Interest Expense 0
Internet Expense 0
Misc. Expense 0
Office Supplies 500
Payroll Expenses 5,767
Telephone Expense 360
Utilities 620
Interest Income 0
Total Debits - Total (credits) 0
Net Income 6,222
Closing Post Closing
Entries Trial Balance
94,437
1,215
1,945
11,000
12,000
300
0
98,000
0
(1,000)
0
0
(1,598)
(123)
0
(72,000)
0
6,222 (144,175)
0 0
2,467 (0)
0
508 0
(1,950) 0
0
0
0
0
0
0
(500) 0
(5,767) 0
(360) 0
(620) 0
0
0 0
(6,222) (0)