Journal Entries

DATE PARTICULARS DEBIT CREDIT

1 Cash 5,000.00  

  Common Stock 5,000.00

  To record the additional investment  
   

2 Purchases 1,300.00  

  Accounts Payable 1,300.00

  To record the purchased inventories on account  
   

3 Advertising Expense 150.00  

  Cash 150.00
  To record the advertising paid  
   

4 Salaries Expense 300.00  

  Cash 300.00
  To record the salaries paid  
   

5 Insurance Expense 250.00  

  Prepaid Expenses 250.00

  To record the expired portion of insurance  
   

6 Cash 2,940.00  

  Accounts Receivable 2,810.00  

  Sales 5,750.00
  To record the goods sold  
   

7 Research and Development Expense 280.00  

  Cash 280.00
  To record the research and development costs paid  
   

8 Accounts Payable 1,720.00  

  Cash 1,720.00
  To record the accounts payable paid  
   

9 Selling, General, Administrative Expenses 255.00  

  Accounts Payable 255.00

  To record the incurred expenses  
   

10 Cash 1,510.00  

  Accounts Receivable 1,510.00

  To record the collection of receivable  
   

11 Overhead and other expenses 100.00  

  Cash 100.00
  To record the overhead and other expenses  
   
12 Prepaid Expenses  
 250.00

  Cash 250.00
   

13 Cash 650.00  

  Deferred Revenue 650.00

  To record cash from deferred revenue  
   

14 Cash 200.00  

  Notes Payable 200.00

  To record the increased notes payable  
   

15 Cash 1,500.00  

  Sales Discount 200.00  

  Sales Returns and Allowances 100.00  

  Sales 1,800.00
  To record the sales  
   

16 Income Summary 1,730.00  

  Merchandise Inventory 1,730.00

  To close the beginning inventory  
   

  Merchandise Inventory 1,750.00  

  Income Summary 1,750.00

  To record the ending inventory  
   

17 Retained Earnings 1,000.00  

  Dividends Payable 1,000.00

  To record the declared dividends  
   

  Dividends Payable 1,000.00  

  Cash 1,000.00
  To record the dividends paid  
   

18 Bad Debts Expense 45.00  

  Allowance for Doubtful Accounts 45.00

  to record the bad debts expense  
   

19 Depreciation Expense 300.00  

  Accumulated Depreciation 300.00

  To record the accumulated depreciation  
   

20 Interest Receivable 100.00  

  Interest Income 100.00

  To record the interest earned  
   

  Bank Charges 50.00  

  Accrued Expenses
 50.00
  To record the bank charges incurred    

T-Accounts

Acco

Cash

Acco

Allow

Intere

Prepa

Inven

Mark

Inves

Prope

Accu

Paten

Good

Acco

Note

Defe

Accr

Bond

Estim
Other liabilities-Long Term 1,000.00

Common Stock 5,000.00

Paid-in Capital common stock 4,990.00

Retained Earnings 1,250.00

Sales 7,550.00

Sales Return & Allowances 100.00

Sales Discount 200.00

Interest Income 100.00

Advertising Expenses 150.00

Salaries Expense 300.00

Insurance Expense 250.00

Research and Development 280.00

Purchases 1,300.00

Income Summary 20.00

Overhead and other expenses 100.00

Bank Charges 50.00

Bad Debts Expense 45.00

Depreciation Expense 300.00

Selling, General, Administrative Expenses 255.00

Total 32,750.00 32,750.00

Financial Statements
DBM CORPORATION
Statement of Comprehensive Income
September 30, 2018

Sales 7,550.00
Less:

Sales Returns 100.00

30
Sales Discount 200.00 0.00  
7,2
Net Sales 50.00
Less: Cost of Goods Sold

Merchandise, beginning 1,730.00

Purchases 1,300.00  
3,03
Total Goods Available for Sale 0.00

Less: Ending Inventory 1,750.00

1,2
Cost of Goods Sold 80.00

Gross Income 5,970.00

Add: Other Income
1
Interest Income 00.00

Total Income 6,070.00

Less: Operating Expenses

Advertising Expenses 150.00

Salaries Expense 300.00

Insurance Expense 250.00

Research and Development 280.00

Overhead and other expenses 100.00

Bank Charges 50.00

Bad Debts Expense 45.00

 Depreciation Expense 300.00
Selling, General, Administrative
Expenses 255.00 1,730.00

Net Income 4,340.00

DBM CORPORATION
Statement of Changes in Equity
September 30, 2018

Common Stock Paid-in Capital Retained Earnings

Balances 5,000.00 4,990.00 2,250.00
Add: Net Income 4,340.00
Less: Dividends Paid 1,000.00
Ending Balance 5,000.00 4,990.00 5,590.00

DBM CORPORATION
Statement of Financial Position
September 30, 2018

ASSETS
Current Assets

Cash 11,910.00
Accounts Receivable 3,460.00
Allowance for Doubtful Expenses 585.00 2,875.00
Interest Receivable 100.00
Prepaid Expenses 1,250.00
Inventories 1,750.00
Marketable Securities 1,750.00
Investments 1,500.00
Total Current Assets 21,135.00

Non-Current Assets
Property, Plant & Equipment 6,200.00
Accumulated Depreciation 3,100.00 3,100.00
Patents and trademarks 500.00
Goodwill 1,000.00
Total Non-Current Assets 4,600.00
25,735.00
TOTAL ASSETS

LIABILITIES AND EQUITY

Liabilities
Current Liabilities
Accounts Payable 2,905.00
Notes payable 800.00
Deferred Revenue 1,650.00
Accrued Expenses 1,050.00
Estimated Tax Liability 750.00
Total Current Liabilities 7,155.00

Non-Current Liabilities
Bonds Payable 2,000.00
Other liabilities-Long Term 1,000.00
Total Non-Current Liabilities 3,000.00

Total Liabilities 10,155.00

 Equity
Common Stock 5,000.00
Paid-in Capital common stock 4,990.00
Retained Earnings 5,590.00
Total Equity 15,580.00

TOTAL LIABILITIES AND

EQUITY 25,735.00

CLOSING ENTRIES

DATE PARTICULARS DEBIT CREDIT

Income Summary 3,330.00

Sales Return & Allowances 100.00

Sales Discount 200.00

Advertising Expenses 150.00

 Salaries Expense 300.00

Insurance Expense 250.00

Research and Development 280.00

Purchases 1,300.00

Overhead and other expenses 100.00

Bank Charges 50.00

Bad Debts Expense 45.00

Depreciation Expense 300.00

Selling, General, Administrative
Expenses 255.00
To close the expense accounts

Sales 7,550.00

Interest Income 100.00

Income Summary 7,650.00

To close tha sales account

Income Summary 4,340.00

Retained Earnings 4,340.00

To close the net income to the retained earnings

Posting Closing entries to ledger