Cheng Co.

Sales Journal

Date Account Debited Invoice No. Ref. Acc Receivables Dr. COGS Dr. Merch
Sales Cr Inv Cr.
Jan 3 B. Sanchez 510 V 3,200.00 1,920.00
3 J. Egan 511 V 1,800.00 1,080.00
11 R. Danforth 512 V 1,300.00 780.00
11 S. Levin 513 V 900.00 540.00
22 B. Sanchez 514 V 2,700.00 1,620.00
22 R. Danforth 515 V 800.00 480.00
25 B. Jiminez 516 V 3,500.00 2,100.00
25 J. Egan 517 V 6,100.00 3,660.00
Total 20,300.00 12,180.00

Cheng Co.
Purchase Journal

Merchandise Inv Dr.

Date Account Credited Terms Ref. Date
Account Payable Cr.

Jan 5 S. Whitefield n/30 V 3,000.00 Jan

5 D. Land n/30 V 2,200.00
16 D. Northcut 1/10, n/30 V 16,000.00
16 S. Jin 2/10, n/30 V 14,200.00
16 S. Whitefield n/30 V 1,500.00
27 D. Northcut 1/10, n/30 V 14,500.00
27 D. Land n/30 V 1,200.00
27 S. Whitefield n/30 V 4,800.00
Total 57,400.00

Cheng Co.
General Journal
Date Account Ref Debit Credit
Jan 9 Sales Return & Allowance 511 300
Acc Receivable-J. Egan 511 300
Merch Inventory 180
COGS 180
18 Acc Payable-S.Jin 200
Merchandise Inventory 200
21 Account Payable 15000
Notes Payable 15000

_x000D_ Sensitivity: Confidential

#
 Date

Jan 7
7
10
13
13
20
21
31

Cheng Co.
Cash Payment Journal
Other
CK.N Account Merchandise
Date Account Debited Ref Accounts Cash Cr.
o. Payable Dr. Inventory Cr.
Dr.
8 Merch Inv V 180 180
9 S. Jin V 9,000 180 8,820
9 D. Northcut V 11,000 110 10,890
12 Rental Expense V 1,000 1,000
15 M. Cheng-Drawing V 800 800
17 Office Supplies V 400 400
23 D. Northcut V 16,000.00 160.00 15,840
23 S. Jin V 14,000.00 280.00 13,720
28 Office Supplies V 200 200
31 Sales Salary V 4300 4,300
31 Office Salary V 2600 2,600
Total 9,480 50,000 730 58,750

_x000D_ Sensitivity: Confidential

#
 Cheng Co.
Cash Receipt Journal

Account Ref Cash Dr. Sales Discount Dr. Account Sales Cr. Other
Credited Receivable. Cr Account Cr.
S. Levin 4,000 4,000
B. Jiminez 2,000 2,000
15,500 15,500
B. Sanchez 510 3,136 64 3,200
J. Egan 511 1,464 36 1,500
17,500 17,500
S. Levin 513 882 18 900
21,300 21,300
Total 65,782 118 11,600 54,300 -

_x000D_ Sensitivity: Confidential

#
 COGS Dr.
Mdse. Inv. Cr

9,300

10,500

12,780
32,580

_x000D_ Sensitivity: Confidential

#
 Cheng Co.
Account Receivable
R. Danforth D. Land
Date Explanation Ref Debit Credit Balance Date
Jan 1 Balance v 1,500.00 1,500.00 Jan
11 Sales 1,300.00 2,800.00
22 Sales 800.00 3,600.00
S. Jin
J. Egan Date
Date Explanation Ref Debit Credit Balance Jan
Jan 3 Sales v 1,800.00 1,800.00
9 Return 300 1,500.00
13 Payment 1,500.00 -
25 Sales 6,100.00 6,100.00

B. Jiminez
Date Explanation Ref Debit Credit Balance R. Manuel
Jan 1 Balance v 7,500.00 7,500.00 Date
7 Payment 2,000.00 5,500.00 Jan
25 Sales 3,500.00 9,000.00

S. Levin D. Northcutt
Date Explanation Ref Debit Credit Balance Date
Jan 1 Balance v 4,000.00 4,000.00 Jan
7 Payment 4,000.00 -
11 Sales 900.00 900.00
21 Payment 900 -

B. Sanchez
Date Explanation Ref Debit Credit Balance B. Whitfield
Jan 3 Sales v 3,200.00 3,200.00 Date
13 Payment 3,200.00 - Jan
22 Sales 2,700.00 2,700.00

Beginning Balance 13,000.00

Sales 20,300.00
Payment 11,600.00
Sales Return 300
Ending Balance 21,400.00
 Cheng Co.
Account Payable

Date Explanation Ref Debit Credit Balance

5 Purchase v 2,200.00 2,200.00
27 Purchase v 1,200.00 3,400.00

Date Explanation Ref Debit Credit Balance

1 Balance v 9,000.00 9,000
9 Payment 9000 -
16 Purchase 14,200.00 14,200
18 Return 200.00 14,000
23 Payment 14,000.00 -

Date Explanation Ref Debit Credit Balance

1 Balance v 15,000.00 15,000
31 Issuing notes 15000 -

D. Northcutt
Explanation Ref Debit Credit Balance
1 Balance v 11,000.00 11,000
9 Payment v 11000 -
16 Purchase 16,000.00 16,000
23 Payment 16,000.00 -
27 Purchase 14,500.00 14,500

B. Whitfield
Explanation Ref Debit Credit Balance
5 Purchase v 3,000.00 3,000
16 Purchase v 1,500.00 4,500
27 Purchase v 4,800.00 9,300

Beginning Balance 35,000

Purchase 57,400.00
Payment 65,000.00
Return 200.00
Ending Balance 27,200.00
Cash 101 Notes Payable
Date Explanation Ref Debit Credit Balance Date
Jan 1 Balance v 35750 35,750.00 Jan 31
31 Cash Receipt CR1 65,782.00 101,532.00
31 Cash Payment CP1 58,750.00 42,782.00

Account Receivable 112 Account Payable

Date Explanation Ref Debit Credit Balance Date
Jan 1 Balance v 13,000.00 13,000.00 Jan 1
31 Credit Sales 20,300.00 33,300.00 31
31 Cash Receipt 11,600.00 21,700.00 31
31 Return 300 21,400.00 31

M. Cheng-Capital
Notes Receivable 115 Date
Date Explanation Ref Debit Credit Balance Jan 31
Jan 1 Balance v 6,000.00 39,000.00
31 39,000.00 M. Cheng-Drawing
Date
Jan 31
Merchandise Inventory 120
Date Explanation Ref Debit Credit Balance Sales
Jan 1 Balance v 18000 18,000.00 Date
31 Purchase 57,400.00 75,400.00 Jan 31
31 Purchase Discount 730.00 74,670.00 31
31 Purchase Return 200.00 74,470.00
31 Credit Sales 12,180.00 62,290.00
31 Cash Sales 32,580.00 29,710.00 Sales Return and Allow
31 Sales Return 180 29,890.00 Date
31 Freight 180 30,070.00 Jan 31

Office Supplies 125

Date Explanation Ref Debit Credit Balance
Jan 1 Balance CP1 1000 1,000.00
31 Purchase 600.00 1,600.00

Prepaid Insurance 130

Date Explanation Ref Debit Credit Balance
Jan 31 Balance CR1 2000 2,000.00
31

Equipment 157
Date Explanation Ref Debit Credit Balance
Jan 31 Balance CR1 0 6,450.00

Acc. Depreciaiton-Equipment 158

Date Explanation Ref Debit Credit Balance
Jan 31 Balance CR1 1500 1,500.00
Notes Payable 200 Sales Discount
Explanation Ref Debit Credit Balance Date Explanation
Notes to R. Manual 15000 15,000.00 Jan 31 Discount

COGS
Date
Account Payable 201 Jan 31 Credit Sales
Explanation Ref Debit Credit Balance 31 Cash Sales
Balance v 35,000.00 35,000.00 31 Sales Return
Purchase P1 57,400.00 92,400.00
Return G1 200.00 92,200.00
Payment CP1 65,000.00 27,200.00

M. Cheng-Capital 301
Explanation Ref Debit Credit Balance
Balance 78,700.00 78,700.00

M. Cheng-Drawing 306
Explanation Ref Debit Credit Balance
Drawing CP1 800 800.00

401
Explanation Ref Debit Credit Balance
Credit Sales S1 20,300.00 20,300.00
Cash Sales CR1 54,300.00 74,600.00

Sales Return and Allowance 412

Explanation Ref Debit Credit Balance
Return-S.Jin G1 300 300.00
 414
Ref Debit Credit Balance
118 118.00

505
Ref Debit Credit Balance
12,180.00 12,180.00
32,580.00 44,760.00
180 44,580.00
 Cheng Co.
Unadjusted Trial Balance Adjusting Entry
Date Account Debit Credit 1
Jan 31 Cash 42,782.00
Account Receivable 21,400.00
Notes Receivable 39,000.00 2
Merchandise Inventory 30,070.00
Office Supplies 1,600.00
Prepaid Insurance 2,000.00 3
Equipment 6,450.00
Acc. Depreciaiton-Equipment 1,500.00
Notes Payable 15,000.00 4
Account Payable 27,200.00
M. Cheng-Capital 78,700.00
M. Cheng-Drawing 800.00
Sales 74,600.00
Sales Return and Allowance 300.00
Sales Discount 118.00
COGS 44,580.00
Sales Salaries Expense 4,300.00
Office Salaries Expense 2,600.00
Rent Expenses 1,000.00
TOTAL 197,000.00 197,000.00
-
 Cheng Co.
Adjusting Entry Adjusted Trial Ba
Office supplies on 31 Jan $500 Date
Office Supplies Expenses 1100 Jan 31
Office Supplies 1100
Insurance expired on Oct 31
Insurance expenses 200.00
Prepaid insurance 200.00
Annual depreciation 1,500
Equipment Depreciation Expense 1500
Accumulated Depr-Equipment 1500
Interest $60 on notes payable
Interest Expenses 60
Notes Payable 60
 Cheng Co.
Adjusted Trial Balance
Account Debit Credit
Cash 42,782.00
Account Receivable 21,400.00
Notes Receivable 39,000.00
Merchandise Inventory 30,070.00
Office Supplies 500.00
Prepaid Insurance 1,800.00
Equipment 6,450.00
Acc. Depreciaiton-Equipment 3,000.00
Notes Payable 15,060.00
Account Payable 27,200.00
M. Cheng-Capital 78,700.00
M. Cheng-Drawing 800.00
Sales 74,600.00
Sales Return and Allowance 300.00
Sales Discount 118.00
COGS 44,580.00
Sales Salaries Expense 4,300.00
Office Salaries Expense 2,600.00
Rent Expenses 1,000.00
Office Supplies Expenses 1100
Insurance expenses 200.00
Equipment Depreciation Expense 1500
Interest Expenses 60
TOTAL 198,560.00 198,560.00
-
 Cheng Co. Cheng Co.
Income Statement Statement of Owner's Equity
For Period Ended 31st Jan 2002 For Period Ended 31st Jan 2002
Net Sales, Jan 2002 74,182.00
COGS (44,580.00) M. Cheng Capital, 1st Jan 2002
Gross Sales 29,602.00 Retained Earnings
Operating Expenses Total
Sales Salaries Expense 4,300.00 M. Cheng, drawings
Office Salaries Expense 2,600.00 M. Cheng Capital, 31st Jan 2002
Rent Expenses 1,000.00
Office Supplies Expenses 1,100.00
Total Opt Expenses (9,000.00)
Operating Income 20,602.00
Non Opt Income/Expenses
Equipment Depreciation Expense 1,500.00
Interest Expenses 60.00
Insurance expenses 200.00
Total Non Opt (1,760.00)

Net Income 18,842.00

 Cheng Co. Cheng Co.
Statement of Owner's Equity Balance Sheet
For Period Ended 31st Jan 2002 Jan, 31st 2002
Asset
Capital, 1st Jan 2002 78,700.00 Cash
18,842.00 Account Receivable
97,542.00 Notes Receivable
(800.00) Merchandise Inventory
Capital, 31st Jan 2002 96,742.00 Office Supplies
Prepaid Insurance
Equipment
Acc. Depreciation on Equipment
Total Asset

Liability & Owner's Equity

Liabilities
Account Payable
Notes Payable
Total Liability
Equity
M. Cheng-Capital
Total Liability and Owner's Equity
Co.
heet
2002

42,782.00
21,400.00
39,000.00
30,070.00
500.00
1,800.00
6,450.00
(3,000.00)
139,002.00

er's Equity

27,200.00
15,060.00
42,260.00

96,742.00
139,002.00
Closing Entries Post-Closing General Ledger
Sales 74,600.00
Income Summary 74,600.00 Office Supplies
Income Summary 55,758.00 Date
Sales Return and Allowance 300.00 Jan 1
Sales Discount 118.00 31
COGS 44,580.00 31
Sales Salaries Expense 4,300.00
Office Salaries Expense 2,600.00 Office Supplies Expenses
Rent Expenses 1,000.00 Date
Office Supplies Expenses 1,100.00 Jan 31
Insurance expenses 200.00 31
Equipment Depreciation Expense 1,500.00
Interest Expenses 60.00 Prepaid Insurance
Income Summary 18,842.00 Date
Retained Earnings 18,842.00 Jan 31
31

Insurance Expenses
Date
Jan 31
31

Office Salaries Expense

Date
Jan 31
31

Sales Salaries Expense

Date
Jan 31
31

Rent Expenses
Date
Jan 31
31
Post-Closing General Ledger

Office Supplies 125 Acc. Depreciaiton-Equipment

Explanation Ref Debit Credit Balance Date Explanation
Balance V 1000 1,000.00 Jan 31 Balance
Purchase CP1 600.00 1,600.00 31 Adjusting Entry
Adjusting Entry AJ1 1100 500.00
Depreciation Expenses
Office Supplies Expenses 728 Date Explanation
Explanation Ref Debit Credit Balance Jan 31 Adjusting Entry
Adjusting Entry AJ1 1100 1,100.00 31 Closing Entry
Closing Entry C1 1,100.00 -
Notes Payable
Prepaid Insurance 130 Date Explanation
Explanation Ref Debit Credit Balance Jan 31 Notes to R. Manual
Balance CR1 2000 2,000.00 31 Adjusting Entry-Interest
Adjusting Entry AJ1 200.00 1,800.00
Interest Expenses
nsurance Expenses 722 Date Explanation
Explanation Ref Debit Credit Balance Jan 31 Adjusting Entry-Interest
Adjusting Entry AJ1 200.00 200.00 31 Closing Entry
Closing Entry C1 200.00 -

Office Salaries Expense 727 Sales Discount

Explanation Ref Debit Credit Balance Date Explanation
Salary Payment CP1 2600 2,600.00 Jan 31 Discount
Closing Entry C1 2,600.00 - 31 Closing Entry

Sales Salaries Expense 627 Sales Return and Allowance

Explanation Ref Debit Credit Balance Date Explanation
Salary Payment CP1 4300 4,300.00 Jan 31 Return-S.Jin
Closing Entry C1 4,300.00 - 31 Closing Entry

Rent Expenses 729 COGS

Explanation Ref Debit Credit Balance Date
Rent Payment CP1 1000 1,000.00 Jan 31 Credit Sales
Closing Entry C1 1,000.00 - 31 Cash Sales
31 Sales Return
31 Closing Entry

Sales
Date Explanation
Jan 31 Credit Sales
31 Cash Sales
31 Closing Entry

Retained Earnings
 Date Explanation
Jan 31 Retained Earnings
 158
Ref Debit Credit Balance
CR1 1500 1,500.00
AJ1 1500 3,000.00

711
Ref Debit Credit Balance
AJ1 1500 1,500.00
C1 1,500.00 -

200
Ref Debit Credit Balance
P1 15000 15,000.00
AJ1 60 15,060.00

718
Ref Debit Credit Balance
CP1 60 60.00
60.00 -

414
Ref Debit Credit Balance
CR1 118 118.00
C1 118.00 -

412
Ref Debit Credit Balance
G1 300 300.00
C1 300.00 -

505
Ref Debit Credit Balance
S1 12,180.00 12,180.00
CR1 32,580.00 44,760.00
G1 180 44,580.00
C1 44,580.00 -

401
Ref Debit Credit Balance
S1 20,300.00 20,300.00
CR1 54,300.00 74,600.00
C1 74,600.00 -

350
 Ref Debit Credit Balance
C1 18,842.00 18,842.00
 Cheng Co.
Post-Closing Trial Balance Yes, the balance in subsidiary ledger ag
Date Account Debit Credit
Jan 31 Cash 42,782.00
Account Receivable 21,400.00
Notes Receivable 39,000.00
Merchandise Inventory 30,070.00
Office Supplies 500.00
Prepaid Insurance 1,800.00
Equipment 6,450.00
Acc. Depreciaiton-Equipment 3,000.00
Notes Payable 15,060.00
Account Payable 27,200.00
M. Cheng-Capital 78,700.00
M. Cheng-Drawing 800.00
Retained Earnings 18,842.00
TOTAL 142,802.00 142,802.00
alance in subsidiary ledger agree with control account