Charts of Accounts Date

101 Cash 401 Sales Dec-01

102 Accounts Receivable 401.1 Sales Discount
103 Allowance for Bad Debts 501 Purchases
104 Notes Receivable 501.1 Freight in
105 Interest Receivable 501.2 Purchase Returns and Allowances
106 Office Supplies 501.3 Purchase Discounts
107 Merchandise Inventory 502 Rent Expense
108 Prepaid Rent 503 Utilities Expense
108.1 Furniture and Fixtures 504 Salaries Expense 2
201 Accounts Payable 505 Freight out
202 Salaries Payable 506 Depreciation Expense
203 Utilities Payable 507 Office Supplies Expense
204 Interest Payable 508 Interest Expense 3
205 Notes Payable 509 Interest Income
301 Barrios, Capital 510 Bad Debts
302 Barrios, Drawing

7
 8

11

12

13

15

15

17

19

22
23

23

28
 Particulars DR
Cash 640,000.00
Barrios, Capital
To record the cash investment of Barrios to the business

Furniture and Fixtures 50,000.00

Barrios, Capital
To record the furniture and Fixtures investment of Barrios to the business

Purchases 40,000.00
Cash
To record the purchasing of mechandise on cash

Purchases 67,200.00
Accounts Payable
To record the purchasing of mechandise on account, FOB Destination
terms 2/10, n/30

Prepaid Rent 16,800.00

Cash
To record the advance payment for the rent

Office Supplies 11,200.00

Cash
To record the purchasing of office supplies on cash

Purchases 224,000.00
Cash
To record the purchasing of mechandise on cash

Freight in 5,000.00
Cash
To record the payment for transportation cost

Purchases 112,000.00
Accounts Payable
To record the purchasing of mechandise on account, FOB Destination
terms 2/10, n/20

Purchases 44,800.00
Notes Payable
To record the acquisition of merchandise with issuance of a promissory note

Accounts Receivable 336,000.00

Notes Receivable
To record the sold merchandise with issuance of promissory note, terms
FOB Destination.

Accounts Receivable 145,600.00

Sales
 To record the sold merchandise on account, FOB Destination terms; 1/10, n/20

Cash 22,000.00
Purchase Returns and Allowances
To record the amount of cash refunded

Cash 56,000.00
Sales
To record the sold merchandise on cash

Accounts Receivable 134,400.00

Sales
To record the sold merchandise on account, FOB Destination; Freight prepaid
terms 2/10, 1/20, n/30

Freight out 2,000.00

Cash
To record the payment for the transportation cost

Accounts Payable 11,200.00

Purchase Return and Allowances
To record the amount of merchandise returned to Ronnie Black

Accounts Payable 100,800.00

Cash
Purchase Discount
To record the payment of total amount due to Ronnie Black

Cash 44,800.00
Accounts Receivable
To record the full payment from Juan Carlos

Salaries Expense 8,000.00

Cash
To record the half month salary payment for the employees

Purchases 280,000.00
Accounts Payable
To record the purchasing of merchandise on account, FOB Destination terms;
2/10, n/30

Accounts Receivable 201,600.00

Sales
To record the sold merchandise on account, FOB destination terms; 2/5, n/30

Freight out 2,000.00

Cash
To record the payment for transportation cost

Utilities Expense 770.00

 Cash
To record the payment for the telephone bill for the month

Cash 133,056.00
Sales Discount 1,344.00
Accounts Receivable
To record the amount received from Western Trading

Accounts Payable 140,000.00

Cash
To record the payment for half of the account owed to Central Trading

Barrios, Drawing 10,000.00

Cash
To record the withdrawal of Barrios from the business for personal use
 CR Adjusting Entry:

640,000.00 a Depreciation Expense-Furniture and Fixtures

Accumulated Depreciation- Furniture and Fixture
To record the depreciable cost of furniture and fixtures

50,000.00 b Rent Expense

Cash
To record the payment for rent

40,000.00 c Office Supplies Expense

Office Supplies
To record the used supplies for the month of december

67,200.00 d Interest Expense

Interest Payable
To record the accrued interest on notes payable

e Interest Receivable
16,800.00 Interest Income
To record the accrued interest on notes receivable

f Salaries Expense
11,200.00 Salaries Payable
To record the accrued salaries

g Utilities Expense
224,000.00 Utilities Payable
To record the accrued electric bill

h Bad Debts
5,000.00 Allowance for Bad debts
To record the estimated bad debts

i Merchandise Inventory
112,000.00 Income Summary

44,800.00

336,000.00

145,600.00
 22,000.00

56,000.00

134,400.00

2,000.00

11,200.00

98,784.00
2,016.00

44,800.00

8,000.00

280,000.00

201,600.00

2,000.00
 770.00

134,400.00

140,000.00

10,000.00
 Cash
DR CR Dec-01 640,000.00 40,000.00
1,000.00 Dec-08 22,000.00 16,800.00
1,000.00 Dec-09 56,000.00 11,200.00
Dec-15 44,800.00 224,000.00
Dec-23 133,056.00 5,000.00
5,600.00 2,000.00
5,600.00 98,784.00
8,000.00
2,000.00
9,200.00 770.00
9,200.00 140,000.00
10,000.00
895,856.00 558,554.00
1,000.00 337,302.00
1,000.00

Accounts Receivable
3,000.00 Dec-07 336,000.00 44,800.00
3,000.00 Dec-07 145,600.00 134,400.00
Dec-11 134,400.00
Dec-19 201,600.00
12,000.00 817,600.00 179,200.00
12,000.00 638,400.00

10,000.00 Notes Receivable

10,000.00 336,000.00
336,000.00

6,384.00 638,400.00
6,384.00 Interest Receivable

200,000.00
200,000.00
Dec-02
Dec-03
Dec-04
Dec-04
Dec-04
Dec-11
Dec-13
Dec-15
Dec-19
Dec-22
Dec-23
Dec-28

Dec-15
Dec-23

Dec-07