date remarks account name pr debit

Dec-01 cash 101 2,000,000

haline, capital 301
to record cash investment
Dec-03 purchases 501 600,000
accounts payable 201
to record purchases merchandise
Dec-04 supplies 105 5,000
accounts payable 201
to record purchases supplies
Dec-05 cash 101 900,000
sales 401
to record sales
Dec-06 accounts payable 402 20,000
purchase return and allowance 102
to record goods returned
Dec-10 accounts receivable 102 500,000
sales 401
to record sales on account
freight in 504 2,000
cash 101
to record freight charges
Dec-11 accounts payable 201 580,000
cash 101
purchase discount 503
to record full payment
Dec-12 purchases 501 350,000
cash 101
to record additional purchases
Dec-14 cash 101 2,200,000
notes payable 202
to record borrowed money
Dec-15 furniture and fixture 110 175,000
accounts payable 201
to record furniture and fixture
salaries 505 35,000
cash 101
to record salaries expenses
Dec-16 sales return and allowance 402 30,000
cash 101
to record customer refund
Dec-17 cash 101 550,000
sales 401
to record sales
Dec-20 freight out 507 7,000
cash 101
 to record freight charges
cash 102 490,000
sales discount 401 10,000
accounts receivable
to record sales on account
Dec-21 purchases 501 400,000
accounts payable 201
to record purchased merchandise
Dec-23 freight in 504 3,000
cash 101
to record freight charges
Dec-26 accounts receivable 101 750,000
sales 401
to record sold merchandise
Dec-27 haline, drawing 302 55,000
cash 101
to record owner's drawings
accounts payable 201 200,000
cash 101
purchase discount 503
to record payment
Dec-28 rent 506 8,000
utilities 508 10,000
advertising 509 6,000
salaries 505 35,000
cash 101
to record various expenses
Dec-30 accounts payable 201 175,000
cash 101
to record purchase

merchandise inventory 800,000

 credit

2,000,000

600,000

5,000

900,000

20,000

500,000

2,000

562,600
17,400

350,000

2,200,000

175,000

35,000

30,000

550,000

7,000
500,000

400,000

3,000

750,000

55,000

96,000
4,000

59,000

175,000
 cash 4,665,400
Dec-01 capital 2,000,000
Dec-05 sales 900,000
Dec-10 freight in 2,000
Dec-11 ap 562,600
Dec-12 purchases 350,000
Dec-14 np 2,200,000
Dec-15 salaries 35,000
Dec-16 sales return 30,000
Dec-17 sales 550,000
Dec-20 freight out 7,000
Dec-20 ar 490,000
Dec-23 freight in 3,000
Dec-27 drawing 55,000
Dec-27 ap 196,000
Dec-28 expenses 59,000
Dec-30 ap 175,000

accounts receivable 750,000

Dec-10 500,000
Dec-20 500,000
Dec-26 750,000

supplies 5,000
Dec-04 5,000

furniture and fixture 175,000

Dec-15 175,000

accounts payable 205,000

Dec-03 600,000
Dec-04 5,000
Dec-06 20,000
Dec-11 580,000
Dec-15 175,000
Dec-21 400,000
Dec-27 200,000
Dec-30 175,000

capital 2,000,000
 Dec-01 2,000,000

drawing 55,000
Dec-27 55,000

notes payable 2,200,000

Dec-14 2,200,000

sales 2,700,000
Dec-05 900,000
Dec-10 500,000
Dec-17 550,000
Dec-26 750,000

sales return and allowance 30,000

Dec-16 30,000

sales discount 10,000

Dec-20 10,000

purchases 1,350,000
Dec-03 600,000
Dec-12 350,000
Dec-21 400,000

purchase return and allowances 20,000

Dec-06 20,000

purchase discount 21,400

Dec-11 17,400
Dec-27 4,000
freight in 5,000
Dec-10 2,000
Dec-23 3,000

salaries 70,000
Dec-15 35,000
Dec-28 35,000

rent expense 8,000

Dec-28 8,000

freight out 7,000

Dec-20 7,000

utilities 10,000
Dec-28 10,000

advertising 6,000
Dec-28 6,000
cash 4,665,400
accounts receivable 750,000
supplies 5,000
furniture and fixture 175,000
accounts payable 205,000
notes payable 2,200,000
capital 2,000,000
drawing 55,000
sales 2,700,000
sales return and allowance 30,000
sales discount 10,000
purchases 1,350,000
purchase return and allowance 20,000
purchase discount 21,400
freight in 5,000
salaries 70,000
rent expense 8,000
freight out 7,000
utilities 10,000
advertising 6,000
7,146,400 7146400
merchandising inventory, Octover 01 0
add; purchase 1,350,000
less: purchase discount -21,400
purchase return and allowance -20,000 -41,400
total 1,308,600
add: freight in 5,000
net purchase 1,313,600
less; merchandising inventory -800,000
cost of good sold 513,600
sales 2,700,000
less; sales return and allowances -30,000
sales discount -10,000 -40,000
net sales 2,660,000
less; cost of good sold -513,600
gross profit 2,146,400
less; saalries expenses -70,000
rent expense -8,000
utilities expenses -10,000
advertising expenses -6,000
freight out -7,000
net profit 2,045,400
owner's capital, oct 01 0
add; investment 2,000,000
net profit 2,045,400 4,045,400
total 4045400
less; owner's drawings -55,000
owner's capital, oct 31 3990400
assets
current assets
cash and cash equivalents 4,665,400
receivable 750,000
prepaid expense 5,000
merchandise inventory 800,000
non-current assets
property, plant, and equipment 175,000
total assets 6,395,400

liabilities
current liabilities
account payable 205,000
non-current liabilities
notes payable 2,200,000
owner's equity 3,990,400
total liabilities and equity 6,395,400
cash flow from operating activities
cash received from cash sales 1,450,000
cash recieved from collection/recxeivables 490,000
cash recived from supplies
cash paid from cahs purchases -350,000
cash paid from purchases on account -933,600
cash paid from freight in purchases -5,000
cash paid from freight out sold -7,000
cash paid from various expenses -94,000
cash refunded to customer -30,000
net cash flow from operating activities 520,400

cahs flow from investing activities

cash paid from purchase equipment 0
net cash flow from investing activities 0

cash flow from financing activities

investment of the owner 2,000,000
cash from bank loan 2,200,000
cash paid from owner's drawing -55,000
net cash flow from financing activities 4,145,000

increase in cash and cash equivalent 4,665,400

add; cash and cash equivalent, october 1 0
cash and cash equivalent, october 31 4,665,400
sales 2,700,000
sales return and allowance -30,000
sales discount -10,000
income summary 2,660,000
to close sales and related accounts

income summary 513,600

purchase return adn allowance -20,000
purchase discount -21,400
merchandise inventory -800,000
purchase 1,350,000
freight in 5,000
to close purchase and related accounts

income summary 101,000

salaries 70,000
rent 8,000
freight out 7,000
utilities 10,000
advertising 6,000
to close operating expense and related accounts

income summary 2,045,400

owner's capital 2,045,400
to close owner's capital

owner's capital 55,000

owner's drawing 55,000
to close owner's withdrawal

2,660,000 2,660,000
cash 4,665,400
accounts receivable 750,000
purchases 800,000
supplies 5,000
equipment 175,000
accounts payable 205,000
notes payable 2,200,000
owner's capital 3,990,400
6,395,400 6,395,400