Particulars Debit Credit

1. Accounts Receivable 15, 000

Cash 15, 000

2.

3. Merchandise Inventory 601, 200

4. Purchases 50, 000

Accounts Payable 50, 000

5. No entry

6. No entry

7. Furniture and Equipment 35, 000

Cash 35, 000

Cash 35, 000

Furniture and Equipment
Gain on sale of Furniture and Equipment

8. Depreciation Expense
Accumulated Depreciation – furniture and equipment

9. Prepaid Insurance 8, 400

Cash 8, 400

Insurance Expense 4, 200

Prepaid Insurance 4, 200

10. Prepaid Rent 120, 000

Rent Expense 120, 000

11. Interest Expense di sure ambot 12, 000

Interest Payable 12, 000

12. Goodwill 300, 000

Retained Earnings 300, 000