Date

Aug 1 Cash 2,650,320.00

Vertudez, Capital 2,650,320.00
To record initial investment of Mr. Vertudez

4 Prepaid Insurance 60,000.00

Cash 60,000.00
To record prepayment of insurance

Taxes and Licenses 15,650.00

Cash 15,650.00
To record payment of business permits for the business

5 Store Equipment 65,000.00

Cash 65,000.00
To record acquisition of store equipment

Store Supplies 21,500.00

Cash 21,500.00
To record store supplies purchased

6 Furniture & Fixtures 25,700.00

Accounts Payable 25,700.00
To record acquisition of furniture on account

8 Purchases 70,000.00
Cash 70,000.00
To record cash purchases

9 Purchases 120,000.00
Accounts Payable 120,000.00
To record purchases on account

Accounts Receivable 85,000.00

Sales 85,000.00
To record sales on account

11 Cash 73,000.00
Freight out 2,000.00
Sales 75,000.00
To record cash sales and payment of freight
12 Accounts Payable 120,000.00
Cash 114,000.00
Purchase Discount 6,000.00
To record settlement of account and cash discount

15 Salaries Expense 45,000.00

Cash 45,000.00
To record payment of salaries to store personnel

Accounts Receivable 90,000.00

Sales 90,000.00
To record sales on account

16 Freight out 1,700.00

Cash 1,700.00
To record delivery expense on Aug 15 sale transaction

17 Purchases 130,000.00
Freight In 2,400.00
Accounts Payable 130,000.00
Cash 2,400.00
To record purchases on account and payment of freight

19 Sales Returns and Allowances 10,000.00

Accounts Receivable 10,000.00
To record received merchandise from customer due to defects

20 Accounts Payable 15,000.00

Purchase Returns and Allowances 15,000.00
To record returned merchandise to supplier

21 Cash 80,000.00
Accounts Receivable 80,000.00
To record collection of customers account

22 Accounts Payable 115,000.00

Cash 109,250.00
Purchase Discount 5,750.00
To record settlement of account and cash discount

27 Light and Water 5,650.00

Cash 5,650.00
To record payment of electricity
28 Vertudez, Drawing 35,000.00
Cash 35,000.00
To record withdrawal of owner

Cash 72,400.00
Freight out 2,600.00
Sales 75,000.00
To record cash sales and payment of freight

30 Salaries Expense 45,000.00

Cash 45,000.00
To record payment of personnel salaries

Cash 200,000.00
Vertudez, Capital 200,000.00
To record additional investment of Mr. Vertudez

31 Rent Expense 22,500.00

Cash 22,500.00
To record rent paid of business space for the month
 ASSETS
Cash
Date
Aug 1