YAMMA SAVE MART

GROUP NAME GANGSTERS

GROUP MEMBERS
YAMAMA HUMAYUN
M AHAD
M HASSAN
ALEENA KASHIF MIR
JAVERIA ANWAR
Amna Bibi

INTRODUCTION
Yamma Save mart is one of the leading grocery stores or supermarkets operating efficiently in the di
They are recognized for providing the best quality products at a reasonab
Yamma Save mart provides
products with quality.
MISSION
"We take care to help you provide your family the freshest foods at affordable prices".
erating efficiently in the different cities of pakistan .
mma Save mart provides its customer 100% original
 CHARTS OF ACCOUNTS
BALANCE SHEET
001 ASSETS 020LIABILITIES
1 CASH 20 LONG TERMS PAYABLES
2 ACCOUNT RECIEVABLE 21 INTEREST PAYABLES
3 INVENTORY 22 ACCOUNT PAYABLE
4 SUPPLIES 23 UNEARNED REVENUE
5 ACCUMULATED DEPRECIATION 24 TAXES PAYABLE
6 PREPAID WAGES
7 PREPAID EXPENSES
8 PREPAID INSURANCE
9 PREPAID RENT
10 BIKE
11 FURNITURE
12 FIXTURES
13 ADVERTISING EXPENSES

INCOME STATEMENT
040 REVENUES 050 EXPENSES
40 SALES REVENUE 50 WAGES EXPENSE
41 SERVICE REVENUE 51 MAINTENANACE EXPENSE
52 INSURANCE EXPENSE
53 ADVERTISING EXPENSE
54 RENT EXPENSE
55 UTILITIES EXPENSE
56 DEPRECIATION EXPENSE-FURNITUR
57 DEPRECIATION EXPENSE-BIKES
58 SUPPLIES EXPENSE
59 INTEREST EXPENSE
60 DEPRECIATION EXPENSE-FIXTURES
61 DISCOUNT ALLOWED
OUNTS

030 EQUITY
30 OWNER EQUITY
31 DRAWINGS
32 INCOME SUMMARY

070 OTHER INCOME

70 DISCOUNT TAKEN
ACE EXPENSE

G EXPENSE

ON EXPENSE-FURNITURE
ON EXPENSE-BIKES

ON EXPENSE-FIXTURES'
 BUSINESS TRANSACTIONS
SERIAL # DATE EXPLANATION
2012
1 Jan 1 Started business with 5 million$, 2million$ invested by owner and 3 million$ by long ter
2 Jan 2 paid 30000$ for advertising expense
3 Jan 3 Purchased inventory of 400,000. 300000 was paid in cash and 100000 was on credit b
4 Jan 4 paid 130000$ as rent for the bassesment of one month in advance
5 Jan 5 Purchased furniture costing 100,000$ paid in cash.
6 Jan 6 Purchased furniture for mart basement costing 110,000$ paid in cash
7 Jan 7 Save mart purchased insurance 40000$, paid in cash.
8 Jan 8 Purchased office supplies of 400,000$ on cash.
9 Jan 9 Sale of 40000$ received in cash.
10 Jan 10 Provided home delivery for 30000$ received in cash.
11 Jan 11 Purchased inventory for 100,000$ on credit with purchases terms 1/./10, n/10.
12 Jan 12 Paid 160000$ for inventory bought on 2 jan
13 Jan 13 Prepaid advertising expanse expired 22500$.
14 Jan 14 Purchased supplies for 80000$ paid on cash.
15 Jan 15 Mart sale of 14000$, 40000$ was received and other was recorded under accounts re
16 Jan 16 Paid 98000$ for inventory purchased on cash.
17 Jan 17 Accrued revenue of 36000$, 4000/days for two weeks
18 Jan 18 Drawings 50000$ for personal use
19 Jan 19 Prepaid insurance was expired totalling 40000$.
20 Jan 20 Received 10000$ on sales made on 14 july.
21 Jan 21 Earned 28000$ revenue accrued on 16 jan.
22 Jan 22 Cost of inventory sold during month was 14000$
23 Jan 23 Utility bills of 5000$ in cash
24 Jan 24 Prepaid rent of amount 150000 was expired.
25 Jan 25 Paid 10000 insurance
26 Jan 26 paid $30000wages to 3 employees $100000 each
27 Jan 27 Recorded $800 as depreciation expense of furniture and fixture by straight line method
28 Jan 28 Earned $12000 as revenue accrued on 16 jan
29 Jan 29 Recorded 10000as interest payable debited to interest expense of long terms notespa
30 Jan 30 There was supplies expense of $60000
31 Jan 31 PC credited to prepaid expanse amounting 21500$
32 Feb 1 Purchased bike for home delivery for 70000$ with cash
33 Feb 2 Prepaid insurance 30000$
34 Feb 3 Purchased goods on credit for $200000
35 Feb 4 Purchased service revenue on 16000$ received
36 Feb 5 Paid 191000$ on goods purchased on 4Feb and received 9000$ discount
37 Feb 6 Provided home delivery and received 170000$
38 Feb 7 Returned goods worthing 30000$
39 Feb 8 Made sales of 300000$ on accounts, 3%, -5, N/10
40 Feb 9 Cost of goods sold were 180000$
41 Feb 10 Maintenance expenses of bikes 5000$
42 Feb 11 Received 219000 for sales on 9Feb and received discount 9000$
43 Feb 12 Recieved $291000 for sales on 9feb and recieved $9000 discount
44 Feb 13 Sales return of goods worth $20000
45 Feb 14 Paid $50000 of wages of which 20000 was expense of first 15 days.
46 Feb 15 Prepaid insurance expired amounting 30000
47 Feb 16 Purchased supplies for $100000
48 Feb 17 Paid 150000 to get a patent
49 Feb 18 Paid 25000 for advertisement expense of mart
50 Feb 19 Paid 18000 for advertisement of which 3000 was expense
51 Feb 20 Recieved $75000 for online service provided in next 15 days
52 Feb 21 Made sales 200000 on cash and 50000 on credit
53 Feb 22 Cost of the goods sold was $130000
54 Feb 23 Home delievery of cosmetics170000 recieved in cash
55 Feb 24 Purchased goods for 110000 net cash
56 Feb 25 Earned 20000as a part of revenue accured on 20 feb
57 Feb 26 Paid utilities bills costing 100000
58 Feb 27 paid insurance expense of $40000
59 Feb 28 There was supplies expense of $90000
60 Mar 1 Wages expense of $20000 was recorded that was paid earlier
61 Mar 2 Recorded $10000 interest payable debited to interest expense of long terms notes pay
62 Mar 3 Pc expense credited to prepaid ads expense amounting $10000
63 Mar 4 Recorded $5000 as a depreciation expense of furniture by straight line method
64 Mar 5 Recorded $7000 as depreciation expense of bikes with $40000salvage value
65 Mar 6 goods amortized by $1000
66 Mar 7 Prepaid rent amount $90000 was expired
67 Mar 8 Recieved $3000 cash from debtors.
68 Mar 9 Provided services on account $50000
69 Mar 10 Made sales on credit totaling $300000
70 Mar 11 Cost of goods sold was $110000.
71 Mar 12 5% of accounts recievable was allocated as allowance for doubtful debts.
72 Mar 13 Prepaid insurance of $40000 and rent of $150000.
73 Mar 14 Doubtful accounts totaling $20000 were written off.
74 Mar 15 Recieved $700000 cash for sales.
75 Mar 16 Purchased goods and inventory costing $50000 paid in cash.
76 Mar 17 Earned $30000 as a part of revenue accured on 20 feb.
77 Mar 18 Purchased equipments for $70000 for office.
78 Mar 19 Recieved $60000 for services to be done in next 30 days.
79 Mar 20 Made sales on account $300000.
80 Mar 21 Cost of goods sold were $170000.
81 Mar 22 2% of this sale, $8000 was estimated warranty payable.
82 Mar 23 $20000 of the doubtful accounts were recovered.
83 Mar 24 Recovered amount was recieved in cash.
84 Mar 25 Provided services for $12000 net cash
85 Mar 26 $60000 was paid to workers half of which was salary of first half.
86 Mar 27 Recieved $300000 sales made on 20 march.
87 Mar 28 Maintenance expense of bikes $8000.
88 Mar 29 Owner with drew $100000 for personal use.
89 Mar 30 Purchased goods of mart on credit $100000 with terms 3%,-5,n/10
90 Mar 31 Recieved $500000 for goods sold and $85000 as general sale tax 17%.
91 Apr 1 Cost of goods sold was $300000.
92 Apr 2 Paid $97000 for inventory purchased on 30 march and get $3000 discount.
93 Apr 3 Earned $30000 as a part of revenue accured on 19 march.
94 Apr 4 Paid $39000 as a A.D expense and $6000 as A.D expense in advance.
95 Apr 5 Purchased supplies for $7000 cassh.
96 Apr 6 Paid utilities expense of $65000.
97 Apr 7 Prepaid insurance expense of $50000.
98 Apr 8 Paid sales tax totalling 85000
99 Apr 9 Recorded $20000 as interest payable debited to interest expense of long term notes p
100 Apr 10 Prepaid rent of amount $150000 was expired.
101 Apr 11 Earned $12000 as a part of revenue accured on 18 march.
102 Apr 12 There was supplies expense of $120000.
103 Apr 13 Prepaid A.D expense of $6000 expired.
ANSACTIONS

and 3 million$ by long terms notes payable.

nd 100000 was on credit basis.

erms 1/./10, n/10.

corded under accounts receivable with term 3%/10,n/5.

ure by straight line method with 3% month

nse of long terms notespayable

00$ discount
se of long terms notes payable

raight line method

00salvage value

oubtful debts.
le tax 17%.

$3000 discount.

pense of long term notes payable.

 JOURNAL - GENERAL
JANUARY TRANSACTIONS

DATE ACCOUNTS TITLE

1st JAN CASH
OWNER'SEQUITY
LONG TERM NOTE PAYABLE
2nd JAN ADVERTISING EXEPENS
CASH
3rd JAN INVENTORY
CASH
A/C PAYABLE
4th JAN PREPAID RENT
CASH
5th JAN FURNITURE
CASH
6th JAN FIXTURES
CASH
7th JAN INSURANACE PREPAID
CASH
8th JAN OFFICE SUPPLIES
CASH
9th JAN CASH
SALES REVENUE
10th JAN CASH
SERVICE REVENUE
11th JAN INVENTORY
ACCOUNTS PAYABLE
12th JAN ACC PAYABLE
CASH
13th JAN ADVERTISEMENT EXPE
PREPAID AD EXP
14th JAN SUPPLIES
CASH
15th JAN CASH
ACC RECIEVABLE 3%,,n/
SALES REVENUE
16th JAN INVENTORY GOODS
CASH
17th JAN CASH
 UNEARNED REVENUE
18th JAN DRAWINGS
CASH
19th JAN INSURANCE EXPANSE
PREPAID INSURANCE
20th JAN CASH
DISCOUNT GIVEN
A/C RECEIVABLE
21st JAN UNEARNED REVENUE
SERVICE REVENUE
22nd JAN COST OF SALE
GOODS, INVENTORY
23rd JAN UTILITY BILLS EXPANSE
CASH
24th JAN RENT EXPENSE
PREPAID RENT
25th JAN INSURANCE EXPENSE
CASH
26th JAN WAGES EXPENSE
CASH
27th JAN DEPRECIATION EXPENS
ACCUMULATED DEP
28th JAN UNEARNED REVENUE
SERVICE REVENUE
29th JAN SUPPLIES EXPENCE
SUPPLIES

LEDGER'S
T-ACCOUNTS

CASH
1 Jan $500,000 2 Jan $30,000
9 Jan $140,000 3 Jan $300,000
10 Jan $30,000 4 Jan $50,000
15Jan $40,000 5 Jan $100,000
16Jan $5,600 6 Jan $110,000
 17Jan $97,000 7 Jan $40,000
8 Jan $60,000
BAL C/D $105,400 11 Jan $80,000
12 Jan $98,000
13 Jan $5,000
16 Jan $5,000
17 Jan $10,000
18 Jan $30,000
T.BALANCE $918,000 T.BALANCE $918,000

UTILITIES BILL EXPENSE

23 Jan $5,000.00
BALANCE $5,000.00 BAL C/D $5,000.00

A/C PAYABLE
12 Jan $60,000.00 3 Jan $100,000.00
11 Jan $100,000.00
BAL C/D $140,000.00

PREPAID RENT
4 June $ 50,000.00 24 June $150,000.00
BAL C/D $100,000.00
T.BAL $150,000.00 T.BAL $150,000.00

OFFICE SUPPLIES
 8Jan $40,000.00 29Jan $60,000.00
14 Jan $80,000.00 BAL C/D $60,000.00
T.BAL $120,000.00 T.BAL $120,000.00

DRAWINGS
18 Jan $5,000.00
T.BAL $5,000.00 BAL C/D $5,000.00

FIXTURES
13Jan $110,000.00
T.BAL $110,000.00 BAL $110,000.00

SUPPLIES EXPENSE
29 Jan $6,000.00

T.BAL $6,000.00

ACCUMULATED DEPRECIATION
27Jan $8,000.00
BAL $8,000.00

WAGES EXPENSES
26Jan $30,000.00
BAL $30,000.00

PREPAID INSURANCE
7Jan $40,000.00 19Jan $400,000.00
BALC/D $360,000.00
 AL - GENERAL
RY TRANSACTIONS

Debit CREDIT
$500,000
$200'000
NOTE PAYABLE 300,000
$30,000
$30,000
$400,000
$300,000
$100,000
$50,000
$50,000
$100,000
$100,000
$110,000
110,000
40,000
40,000
$40,000
$40,000
$140,000
$140,000
$30,000
$30,000
$100,000
$100,000
$60,000
$60,000
$22,500
$22,500
$80,000
$80,000
$40,000
$100,000
$140,000
98,000
98,000
$5,600
ED REVENUE $5,600
5,000
5,000
400,000
INSURANCE 400,000
97,000
$3,000
100,000
28,000
28,000
140,000
NVENTORY 140,000
5000
5000
150,000
150,000
10,000
10,000
30,000
30,000
$8,000
8000
12,000
12,000
60,000
60,000

GER'S
COUNTS

ADVERTISING EXPENSE
2 Jan $30,000.00
13 Jan $22,500.00
T.BALANCE $52,500.00 BAL C/D $52,500.00
 GOODS
3 Jan $400,000.00 22Jan $140,000.00
11Jan 100000 BAL C/D $458,000.00
16 Jan 98000
T.BAL $598,000.00 T.BAL $598,000.00

RENT EXPENSE
24 Jan $150,000.00

BAL $150,000.00 BAL $150,000.00

FURNITURE
5Jan $100,000.00
T.BAL $100,000.00 T.BAL $100,000.00

SALES REVENUE
 15 Jan $140,000.00
9Jan $140,000.00
BAL C/D $280,000.00 T.BAL $280,000.00

INSURANCE EXPENSE
19Jan $400,000.00
25Jan $10,000.00 BALC/D $410,000.00
T.BAL $410,000.00 0

SERVICE REVENUE
21Jan $28,000.00
28Jan $ 12,000.00
10Jan $30,000.00
BAL $70,000.00 T.BAL $70,000.00

DEPRECIATION EXPENSE
27 Jan $8,000.00
T.BAL $8,000.00

UNEARNED SERVICE REVENUE

21Jan $28,000.00 17Jan $5,600.00
28Jan $12,000.00 BAL C/D $34,400.00
T.BAL $40,000.00 T.BAL $40,000.00

COST OF GOOD SOLD

22Jan $140,000.00
BAL $140,000.00

ACCOUNT RECIEVABLE
15 Jan $100,000.00 20Jan $100,000.00

BAL ZERO BAL ZERO

TRIAL BALANCE
YEAR ENDED 31 JANUARY 20XX

ACCOUNT TITLE UNADJUSTED TRIAL BALANCE ADJUSTMENTS

DEBIT CREDIT DEBIT CREDIT
CASH $105,400
ACCOUNT RECIEVABLE ZERO
PREPAID INSURANCE $360,000.00
INVENTORY $458,000.00
PREPAID RENT $100,000.00 $30,000.00
FURNITURES $100,000.00
FIXTURES $110,000.00
SUPPLIES $60,000.00 $20,000.00
ACCUMULATED DEPRECIATION $8,000.00 $3,000.00
LONG TERMS NOTES PAYABLE $600,000.00
CURRENT PORTION $793,000.00
ACCOUNT PAYABLES $140,000.00
UNEARNED REVENUE $34,400.00 $8,000.00
OWNER EQUITY 200,000
DRAWINGS $5,000.00
SALES REVENUE $280,000.00
SERVICE REVENUE $70,000.00 $8,000.00
DISCOUNT ALLOWED $3,000.00
COST OF SALES $140,000.00
INSURANCE EXPENSE $410,000.00
RENT EXPENSE $150,000.00 $30,000.00
ADVERTISING EXPENSE $52,500.00 $12,500.00
UTILITIES BILL EXPENSE $5,000.00
SUPPLIES EXPENSE $6,000.00 $20,000.00
WAGES EXPENSE $30,000.00
DEPRECIATION EXPENSE $8,000.00 $3,000.00
PREPAID ADVERTISING EXPEN $22,500.00 $12,500.00
TOTAL ### ### ### ###

INCOME STATEMENT
FOR THE MONTH ENDED 31 JANUARY 20XX

REVENUE SALES $280,000.00

REVENUE SERVICE $70,000.00
 LESS:COST OF SALES $140,000.00
GROSS PROFIT $210,000.00

ADD OTHER INCOME $3,000.00

LESS:EXPENSES
UTILITIES EXPENSES $5,000.00
ADVERTISING EXPENSES $52,500.00
RENT EXPENSES $150,000.00
DEPRECIATION EXPENSES $8,000.00
SUPPLIES EXPENSES $6,000.00
INSURANCE EXPENSES $410,000.00 $631,500.00
NET PROFIT OR LOSS -$418,500.00

STATEMENT OF OWNER EQUITY

AS AT 31 JANUARY

OWNER EQUITY $200,000.00

ADD:NET PROFIT/LOSS -$418,500.00
LESS:DRAWINGS $5,000.00
EQUITY AT 31 JANUARY -$213,500.00

BALANCE SHEET

NON-CURRENT ASSETS
FURNITURE $100,000.00
FIXTURES $110,000.00
LESS:ACCUMULATED DEPRECIATION $8,000.00
TOTAL NON-CURRENT ASSETS $202,000.00
CURRENT ASSETS
CASH $105,400
SUPPLIES $60,000.00
INVENTORY $458,000.00
PREPAID ADVERTISING $270,500.00
PREPAID INSURANCE $360,000.00
TOTAL CURRENT ASSETS $1,253,900
TOTAL ASSETS ###
NON-CURRENT LIABILITIES
LONG TERMS NOTES PAYABLE $793,000.00
CURRENT PORTION $600,000.00
A/C PAYABLE $140,000.00
UN EARNED REVENUE $34,400.00
TOTAL LIABILITIES ###
OWNER EQUITY -$213,500.00
TOATAL LIABILITIES AND EQUITY ###
CLOSING ENTRIES

DATE DESCRIPTION DEBIT CREDIT

1/31/20XX SALES REVENUES $280,000.00
SERVICE REVENUE $70,000.00
DISCOUNT $3,000.00
INCOME SUMMARY A/C $353,000.00

1/31/20XX INCOME SUMMARY $801,500.00

UTILITIES EXPENSE $5,000.00
INSURANCE EXPENSE $410,000.00
RENT EXPENSE $150,000.00
WAGES EXPENSE $30,000.00
ADVERTISING EXPENSE $52,500.00
DEPRECIATION EXPENSE $8,000.00
SUPPLIES EXPENSE $6,000.00
COST OF SALES $140,000.00

1/31/20XX OWNER EQUITY $448,500.00

INCOME SUMMARY A/C $448,500.00

1/31/20XX OWNER EQUITY $5,000.00

DRAWINGS $5,000.00
 ADJUSTING ENTRIES
ADJUSTMENTS AT 31 JANUARY 20XX
DATE DESCRIPTION
1/31/20XX RENT EXPENSE
ADJUSTED TRIAL BALANCE PREPAID RENT
DEBIT CREDIT 1/31/20XX DEPRECIATION EXPENSE(
$105,400 ACC. DEPRECIATION
ZERO 1/31/20XX DEPRECIATION EXPENSE(F
$360,000.00 ACC. DEPRECIATION
$458,000.00 1/31/20XX UN EARNED REVENUE
$ 70,000.00 SERVICE REVENUE
$100,000.00 1/31/20XX SUPPLIES EXPENSE
$110,000.00 SUPPLIES
$40,000.00 1/31/20XX ADVERTISING EXPENSE
$11,000.00 PREPAID ADV.EXPENSE
$600,000.00
$793,000.00
$140,000.00
$26,400.00
200,000
$5,000.00
$280,000.00
$78,000.00
$3,000.00
$140,000.00
$410,000.00
$180,000.00
$65,000.00
$5,000.00
$26,000.00
$30,000.00
$11,000.00
$10,000.00
### ###
UARY 20XX
DEBIT CREDIT
$30,000.00
$30,000.00
$3,000.00
$3,000.00
$2,000.00
$2,000.00
$8,000.00
$8,000.00
$20,000.00
$20,000.00
$12,500.00
V.EXPENSE $12,500.00
 JOURNAL-GENERAL
FEBURARY

DATE ACCOUNT TITLE DEBIT CREDIT

1ST FEB BIKE $70,000
CASH $70,000
2ND FEB PREPAID INSURANCE $30,000
CASH $30,000
3RD FEB GOODS $200,000
A/C PAYABLE $200,000
4TH FEB UNEARNED REVENUE $16,000
SERVICE REVENUE $16,000
5TH FEB A/C PAYABLE 191,000
DISCOUNT $90,000
CASH 200,000
6TH FEB CASH $170,000
SERVICE CHARGES EXPANSE $17,000
7TH FEB CASH $30,000
GOODS RETURN $30,000
8TH FEB ACCOUNT RECEIVABLE $300,000
SALES REVENUE $300,000
9TH FEB COST OF SALES $180,000
INVENTORY $180,000
10TH FEB MAINTENANCE EXPANSE $5,000
CASH $5,000
11TH FEB CASH $291,000
DISCOUNT $9,000
A/C RECEIVEABLE $200,000
12TH FEB WAGES EXPANSE $30,000
PREPAID EXPANSE $30,000
CASH $60,000
13TH FEB PREPAID INSURANCE $30,000
INSURANCE EXPANSE $30,000
14TH FEB SUPPLIES $100,000
CASH $100,000
15TH FEB PATENT $150,000
CASH $150,000
16TH FEB ADVERTISING EXPENSE $25,000
CASH $25,000
17TH FEB ADVERTISING EXPENSE $3,000
 PREPAID ADV.EXPENSE $15,000
CASH $18,000
18TH FEB CASH $200,000
RECIEVABLE $50,000
GOODS $250,000
19TH FEB PREPAID ONLINE SERVICES $75,000
ONLINE SERVICE EXPANSE $75,000
20TH FEB COST OF GOODS SOLD $130,000
INVENTORY $130,000
21ST FEB CASH $170,000
COSMETIC PRODUCT $170,000
22ND FEB GOODS $11,000
CASH $11,000
23RD FEB UNEARNED REVENUE $20,000
SERVICE REVENUE 20,000
24TH FEB UTILITIES EXPENSE $100,000
CASH $100,000
25TH FEB INSURANCE EXPENSE $40,000
CASH $40,000
26TH FEB CASH $180,000
SERVICE REVENUE $180,000

LEDGERS
T-ACCOUNTS

CASH
6 Feb $17,000
7 Feb $30,000
11 Feb $291,000
19 Feb $200,000
21 Feb $170,000
26Feb $180,000
BAL C/D $20,000
T.BAL $908,000
 PREPAID INSURANCE

2Feb $30,000
BAL 0

SUPPLIES
14Feb $100,000

PREPAID ADVERTISING EXPENS

17Feb $15,000
BAL $15,000

PREPAID WAGES
12Feb $30,000
T.BAL $30,000
 ACCOUNT TITLE

CASH
ACCOUNT RECIEVABLE
PREPAID INSURANCE
GOODS
BIKE
PATENT
SUPPLIES
PREPAID WAGES
PREPAID ADVERTISING EXPENSE
FURNITURE
LONG TEREMS NOTES PAYABLE
CURRENT PORTION
A/C PAYABLE
UN EARNED REVENUE
OWNER EQUITY
DRAWINGS
SERVICE REVENUE
DISCOUNT ALLOWED
COST OF GOOD SOLD
INSURANCE EXPENSE
WAGES EXPENSE
UTILITIES EXPENSE
ADV.EXP
MAINTENACE EXPENSE
DEPRECIATION
SUPPLIES
TOTAL

INCOME STATEM
FEBURARY
REVENUE SERVICES
LESS:COST OF SALES
GROSS PROFIT
ADD: OTHER INCOME
LESS:EXPENSES
INSURANCE EXPENSES
WAGES EXPENSES
ADV.EXPENSES
NET PROFIT

STATEMENT OF OWNWER E
FEBURARY

OWNER EQUITY
ADD: INCOME
LESS: DRAWINGS
EQUITY AT 28 FEBURARY

BALANCE SHE

NON-CURRENT ASSETS
FURNITURE
BIKES
PATENT
LESS:ACCUMULATED DEPRECIATION
NON-CURRENT ASSETS
CURRENT ASSETS
CASH
A/C RECIEVABLE
SUPPLIES
GOODS
PREPAID ADV.EXPENSE
PREPAID WAGES
CURRENT ASSETS
NON-CURRENT LIABILITIES
LONG TERMS NOTES PAYABLE
CURRENT LIABILITIES
CURRENT PORTION OF LIABILITIES
UNEARNED REVENUE
A/C PAYABLES
TOTAL LIABILITIES
EQUITY
EQUITIES AND LIABILITIES

POST CLOSING TRIAL B

ACCOUNT TITLE
CASH
ACCOUNT RECIEVEABLE
PREPAID INSURANCE
GOODS
BIKES
PATENT
SUPPLIES
PREPAID WAGES
PREPAID ADVERTISING E
FURNITURE
LONG TERMS NOTES PAYABLE
CURRENT PORTION
A/C PAYABLE
UN EARNED REVENUE
EQUITY
TOTAL
CASH UN- EARNED REVENUE
1Feb $70,000 4Feb $16,000
2 Feb $30,000 23Feb $20,000
5Feb $200,000 BAL $36,000 BAL C/D $36,000
10Feb $5,000
12Feb $60,000
14Feb $100,000
15Feb $150,000
16Feb $25,000
 17Feb $18,000 BIKE
22Feb $110,000
24Feb $100,000 1Feb $70,000
25Feb $40,000 BAL $70,000 BAL C/D $70,000
T.BAL $908,000

EPAID INSURANCE GOODS

3Feb $200,000 20Feb $130,000
13Feb $30,000 22Feb $110,000 15Feb $180,000
BAL C/D 0 BAL $310,000 BAL C/D $310,000

SUPPLIES A/C RECIEVABLE

3Feb $300,000 11Feb
BAL C/D $100,000 19Feb $50,000 BAL C/D
BAL $350,000 T.BAL

ADVERTISING EXPENSE PATENT

15Feb $150,000
BAL C/D $15,000 T.BAL $150,000 BAL C/D $150,000

PREPAID WAGES

BAL C/D $30,000

 TRIAL BALANCE
FEBURARY 29
ACCOUNT TITLE UNADJUSTED TRIAL BALANCE ADJUSTMENTS ADJUSTED TRIAL BALAN
DEBIT CREDIT DEBIT CREDIT DEBIT
CASH $70,000 $70,000
COUNT RECIEVABLE $50,000 $50,000
EPAID INSURANCE 0 0
$310,000.00 $310,000.00
$70,000 $70,000
$150,000 $150,000
$100,000 $60,000 $40,000
EPAID WAGES $30,000 $30,000 $0
EPAID ADVERTISING EXPENSE $15,000 $15,000 $0
$50,000 $50,000
NG TEREMS NOTES PAYABLE $793,000
URRENT PORTION $70,000
C PAYABLE $9,000
N EARNED REVENUE $30,500 $20,000
WNER EQUITY $213,500.00
$0.00 $0.00
RVICE REVENUE $216,000 $20,000
SCOUNT ALLOWED $9,000.00 $30,000
OST OF GOOD SOLD $310,000 $310,000
SURANCE EXPENSE $10,000 $10,000
AGES EXPENSE $30,000 $30,000 $60,000
ILITIES EXPENSE $100,000 $100,000
$28,000 $15,000 $22,000
AINTENACE EXPENSE 0 0
PRECIATION 0 0
0 $60,000 $60,000
### ### $125,000 $125,000 $1,332,000

INCOME STATEMENT
FEBURARY
EVENUE SERVICES $236,000
SS:COST OF SALES $100,000
ROSS PROFIT $136,000
D: OTHER INCOME $3,000
SS:EXPENSES
SURANCE EXPENSES $10,000
AGES EXPENSES $60,000
V.EXPENSES $22,000 $92,000
NET PROFIT $47,000

STATEMENT OF OWNWER EQUITY

FEBURARY

OWNER EQUITY $213,500.00

ADD: INCOME $47,000
LESS: DRAWINGS $0.00
EQUITY AT 28 FEBURARY $260,500.00

BALANCE SHEET

ON-CURRENT ASSETS
$50,000
$70,000
$150,000
SS:ACCUMULATED DEPRECIATION 0
ON-CURRENT ASSETS $270,000
URRENT ASSETS
SH $70,000
C RECIEVABLE $50,000
PPLIES $100,000
OODS $310,000.00
EPAID ADV.EXPENSE $15,000
EPAID WAGES $30,000
URRENT ASSETS $845,000
ON-CURRENT LIABILITIES
NG TERMS NOTES PAYABLE $542,000
URRENT LIABILITIES
URRENT PORTION OF LIABILITIES $70,000
NEARNED REVENUE $10,500
C PAYABLES $9,000
OTAL LIABILITIES $631,500
$213,500.00
QUITIES AND LIABILITIES $845,000

CLOSING ENTRIES

DATE DESCRIPTION DEBIT CREDIT

28Feb SERVICE REVENUE $236,000
INCOME SUMMARY A/C $236,000

28Feb INCOME SUMMARY EXPEN $252,000

INSURANCE EXPENSE $10,000
WAGES EXPENSE $60,000
UTILITIES EXPENSE $100,000
ADV.EXPENSE $22,000
MAINTENANCE EXPENSE 0
DEPRECIATION EXPENSE 0
SUPPLY EXPENSE $60,000

28Feb INCOME SUMMARY $22,000.00

OWNER EQUITY $22,000.00

POST CLOSING TRIAL BALANCE

ACCOUNT TITLE DEBIT CREDIT

CASH $70,000
COUNT RECIEVEABLE $50,000
EPAID INSURANCE 0
$310,000.00
$70,000
$150,000
 $40,000
EPAID WAGES $0
EPAID ADVERTISING E $0
$50,000
NG TERMS NOTES PAYABLE $437,000
URRENT PORTION $70,000
C PAYABLE $9,000
N EARNED REVENUE $10,500
$213,500.00
TOTAL $740,000.00 $740,000.00
CIEVABLE
$300,000
$50,000
$350,000
DJUSTED TRIAL BALAN ADJUSTING ENTRIES
CREDIT
DATE DESCRIPTION DEBIT
28Feb SUPPLIES EXPENSE $60,000
SUPPLIES
28Feb WAGES EXPENSE $30,000
PREPAID WAGES
28Feb UN EARNED REVENUE $20,000
SERVICE REVENUE
28Feb ADV.EXPENSE $15,000
PREPAID ADV.EXPENSE

$793,000
$70,000
$9,000
$10,500
$213,500.00

$236,000

###
CREDIT

$60,000

$30,000

$20,000

$15,000
 JOURNAL-ENTRIES
MARCH AND APRIL
DATE PARTICULAR DEBIT
1ST MARCH WAGES EXPENSE $20,000
PREPAID WAGES EXPENSE
2ND MARCH INTEREST EXPENSE $10,000
INTEREST PAYABLE
3RD MARCH PREPAID ADV.EXPENSE $10,000
ADV.EXPENSE
4TH MARCH DEPRECIATION EXPENSE( $5,000
ACC.DEPRECIATION
5TH MARCH DEP.EXPENSE $7,000
ACC.DEPRECIATION
6TH MARCH RENT EXPENSE $90,000
PREPAID RENT EXP
7TH MARCH CASH $3,000
RECEIVABLE
8TH MARCH RECEIVABLE $50,000
SERVICES REVENUE
9TH MARCH RECEIVABLE $300,000
GOODS
10TH MARCHCASH $110,000
COGS
11TH MARCHALLO FOR DOUBTFUL DET $5,000
DOUBTFUL BAD DETS
12TH MARCHPREPAID INSURANCE $40,000
PREPAID RENT $150,000
CASH
13TH MARCHDOUBTFUL DETS $20,000
RECEIVABLE
14TH ,MARCHCASH $70,000
RECEIVABLE
15TH MARCHGOODS $50,000
CASH
16TH MARCHREVENUE EARNED $30,000
ACCRUED REVENUE
17TH MARCHEQUIPMENTS $70,000
CASH
18TH MARCHCASH $60,000
INSURANCE PAYMENTS
19TH MARCHRECEIVABLE $300,000
GOODS
20TH MARCHCOGS $170,000
GOODS
21TH MARCHESTIMATED WARRANTY PA $8,000
CASH
22TH MARCHCASH $20,000
DOUBTFUL DETS
23RD MARCHCASH $12,000
SERVICES
24TH MARCHWAGES ON SALARAY EXPE $60,000
CASH
25TH MARCHCASH $12,000
RECEIVABLE
26TH MARCHMAINTENANCE EXP $8,000
CASH
27TH MARCHDRAWINGS $100,000
CASH
28TH MARCHGOODS $100,000
A/C PAYABLE
29TH MARCHCASH $500,000
SALES TAX PAYABLE
SALES REVENUE
30TH MARCHGOODS $5,000
PAYABLE
1ST APRIL CASH $300,000
COGS
2ND APRIL A/C PAYABLE $100,000
DISCOUNT
CASH
3RD APRIL UNEARNED REVENUE $30,000
SERVICE REVENUE
4TH APRIL ADVERTISEMENT EXPANSE $39,000
PREPAID ADVERTISEMEN $6,000
CASH
5TH APRIL SUPPLIES $7,000
CASH
6TH APRIL UTILITIES EXPENSE $65,000
CASH
7TH APRIL INSURANCE EXPENSE $50,000
PREPAID INSURANCE EXPENSE
 8TH APRIL SALES TAX PAYABLE $85,000
CASH
9TH APRIL INTEREST EXPENSE $20,000
INTEREST PAYABLE

LEDGERS

CASH RECIEV

7TH MARCH $3,000 12TH MARCH $190,000 8TH MARCH

10TH MARCH $110,000 15TH MARCH $50,000 9TH MARCH
14TH MARCH $70,000 17TH MARCH $70,000 19TH MARCH
18TH MARCH $60,000 21TH MARCH $8,000 BALC/D
22ND MARCH $20,000 24TH MARCH $60,000 T.BAL
23RD MARCH $12,000 26TH MARCH $8,000
25TH MARCH $300,000 2ND APRIL $97,000
1ST APRIL $300,000 4TH APRIL $45,000
T.BAL $875,000 5TH APRIL $7,000
6TH APRIL $65,000
8TH APRIL $85,000
BAL C/D $190,000.00
T.BAL $875,000

GOODS INTEREST EXPENSE

19TH MARCH $300,000 9TH MARCH $300,000 2ND MARCH $10,000

28TH MARCH $100,000 20TH MARCH $170,000 9TH APRIL $20,000
30TH MARCH $5,000 T.BAL $470,000 T.BAL $30,000
BALC/D $65,000
T.BAL $470,000

INTEREST PAYABLE SALARY EXPENSE

 2ND MARCH $10,000 24TH MARCH $60,000
9TH APRIL $20,000 T.BAL $60,000
BALC/D $30,000 T.BAL $30,000

DOUBTFUL DEBTS UNEARNED REVENU

13TH MARCH $20,000 11TH MARCH $5,000 3RD APRIL $30,000

T.BAL $20,000 BALC/D $15,000

SALES TAX PAYABLE

8TH APRIL $85,000 29TH MARCH $85,000

0 0

TRIAL BALANCE
MARCH AND APRIL

ACCOUNT TITLE UNADJUSTED TRIAL BAL

DEBIT
CASH $190,000
RECIEVABLE $373,000
GOODS $65,000
PREPAID RENT $60,000
EQUIPMENTS $70,000
PREPAID INSURANCE $40,000
PREPAID ADV.EXP $16,000
SUPPLIES $7,000
A/C PAYABLE
LONG TERMS NOTES PAYABLE
CURRENT PORTION
UNEARNED REVENUE
INTEREST PAYABLE
ESTIMATED WARRANTY PAYABLE
SALES TAX PAYABLE
OWNER EQUITY
DRAWINGS $100,000
SERVICE REVENUE $32,000
SALES REVENUE $425,000
REVENUE EARNED $30,000
COGS $130,000
DEP.EXP $5,000
DEP EXP $7,000
INTERST EXP $10,000
ADV.EXP $139,000
RENT EXPENSE $90,000
SALARY EXPENSE $60,000
MAINTENANCE EXPENSE $8,000
UTILITIES EXPENSE $65,000
INSURANCE EXPENSE $50,000
TOTAL ###

INCOME STATEMENT

REVENUES:
SALES REVENUES $32,000
SERVICE REVENUE $425,000
REVENUE EARNED $30,000
LESS:COST OF SALES $130,000
GROSS PROFIT $357,000
LESS EXPENSES
INSURANCE EXPENSE $50,000
UTILITIES EXPENSE $65,000
SALARY EXPENSE $60,000
INTEREST EXPENSE $10,000
NET INCOME $172,000
STATEMENT OF OWNWER EQUITY

OWNWER EQUITY $500,000

ADD INCOME $172,000
LESS:DRAWINGS $100,000
OWNWER EQUITY AT 31MA $572,000

BALANCE SHEET

NON-CURRENT ASSETS
EQUIPMENT $70,000
CURRENT ASSETS
CASH $190,000
RECIEVABLE $373,000
GOODS $65,000
PREPAID RENT $60,000
PREPAID INSURANCE $40,000
TOTAL ASSETS $798,000
NON CURRENT LIABILITIES
LONG TERMS NOTES PAY $400,000.00
CURRENT LIABILITIES AND EQUITY
A/C PAYABLE $195,000
UNEARNED REVENUE $30,000
OWNER EQUITY $100,000.00
ADD:INCOME $73,000
TOTAL LIABILITIES AND E $798,000.00

CLOSING ENTRIES

DATE DESCRIPTION DEBIT

31March SALES REVENUE $32,000
SERVICE REVENUE $425,000
INCOME SUMMARY A/C
31 March INCOME SUMMARY A/C $235,000
RENT EXPENSE
UTILITIES EXPENSE
 SALARY EXPENSE
INSURANCE EXPENSE

31 March income summary $220,000.00

owner equity
CREDIT

$20,000

$10,000

$10,000

$5,000

$7,000

$90,000

$3,000

$50,000

$300,000

$110,000

$5,000

$190,000

$20,000

$70,000

$50,000

$30,000

$70,000

$60,000
$300,000

$170,000

$8,000

$20,000

$12,000

$60,000

$12,000

$8,000

$100,000

$100,000

$85,000
$425,000

$5,000

$300,000

$3,000
$97,000

$30,000

$45,000

$7,000

$65,000

$50,000
 $85,000

$20,000

RECIEVABLE

$50,000 7TH MARCH $3,000

$300,000 13TH MARCH $20,000
$300,000 14TH MARCH $700,000
$373,000 25TH MARCH $300,000
$1,023,000 T.BAL $1,023,000

INTEREST EXPENSE

BALC/D $30,000

SALARY EXPENSE
 BALC/D $60,000

UNEARNED REVENUE

BAL C/D $30,000

NADJUSTED TRIAL BAL ADJUSTMENTS ADJUSTED TRIAL BALANCE

CREDIT DEBIT CREDIT DEBIT CREDIT
$190,000
$373,000
$65,000
6000 $54,000
$70,000
5000 $35,000
$16,000
$7,000
$195,000 $195,000
$900,000 $900,000
$224,000 $224,000
$30,000 $30,000
 $30,000 $30,000
$8,000 $8,000
$85,000 $74,000
$500,000 $500,000
$100,000
$32,000
$425,000
$30,000
$130,000
$5,000
$7,000
$10,000
$139,000
6000 $90,000
$60,000
$8,000
$65,000
5000 $50,000
### $11,000.00 $11,000.00 1961000 1961000

$185,000
CREDIT

$457,000

$60,000
$65,000
 $60,000
$50,000

$220,000.00