Scribd Logo
Upload

Welcome to Scribd!

  • 301 views

    Jennys Froyo

    Uploaded by

    Kailash Kumar
    Jenny's Froyo is a frozen yogurt company that recorded various business transactions in its general journal in 2013 and 2014. In 2013, it raised $100,000 through an issuance of common stock. It also recorded sales revenue, inventory purchases, expenses, depreciation, and income tax. In 2014, it recorded additional sales, purchases, expenses, dividends paid, and financial position in its balance sheet and income statement. The financial statements show net income of $49,800 on sales of $300,000 for 2014.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Jennys Froyo

    Uploaded by

    Kailash Kumar
    301 views16 pages
    Jenny's Froyo is a frozen yogurt company that recorded various business transactions in its general journal in 2013 and 2014. In 2013, it raised $100,000 through an issuance of common stock. It also recorded sales revenue, inventory purchases, expenses, depreciation, and income tax. In 2014, it recorded additional sales, purchases, expenses, dividends paid, and financial position in its balance sheet and income statement. The financial statements show net income of $49,800 on sales of $300,000 for 2014.

    Original Description:

    ,n

    Original Title

    jennys froyo

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Jenny's Froyo is a frozen yogurt company that recorded various business transactions in its general journal in 2013 and 2014. In 2013, it raised $100,000 through an issuance of common stock. It also recorded sales revenue, inventory purchases, expenses, depreciation, and income tax. In 2014, it recorded additional sales, purchases, expenses, dividends paid, and financial position in its balance sheet and income statement. The financial statements show net income of $49,800 on sales of $300,000 for 2014.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    301 views16 pages

    Jennys Froyo

    Uploaded by

    Kailash Kumar
    Jenny's Froyo is a frozen yogurt company that recorded various business transactions in its general journal in 2013 and 2014. In 2013, it raised $100,000 through an issuance of common stock. It also recorded sales revenue, inventory purchases, expenses, depreciation, and income tax. In 2014, it recorded additional sales, purchases, expenses, dividends paid, and financial position in its balance sheet and income statement. The financial statements show net income of $49,800 on sales of $300,000 for 2014.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 16

    Jenny's Froyo, INC.

    General Journal
    Year 2013
    Serial No Particulars P/R Debit
    1 Cash $100,000
    Common stock

    2 Cash $190,000
    Sales

    3 Inventory $72,000
    Account Payable

    4 Loss on inventory Write-of $2,000


    Inventory

    3B Account Payable $47,000


    Cash
    Explanation:
    2013
    Accounts Payable
    Opeing Balane Nil
    Purchases 72000
    Closing Balance 25000
    Cash Paid 47000
    5 Property, Plants and Equipments $25,000
    Property, Plants and Equipments $2,000
    Property, Plants and Equipments $4,000
    Cash
    (Debit what comes in credit what goes out)

    6(b) Allowance for Depriciation $500


    Cash $1,300
    Loss on Disosal of PPE $200
    Property, Plants and Equipments
    8(a) Advertising Expense $3,000
    Cash

    8(b) Prepaid Business License $1,800


    Cash

    8(C) Business License expense $900


    Prepaid Business License
    8(D) Rent Expense $24,000
    Cash
    8(E) Salary Expense(48000+12000) $60,000
    Cash
    Salary Payable

    8 (F) Utilities Expense $3,600


    Cash

    9 Depriciation Expense $5,000


    Allowance for Depriciation
    (Depriciation on Model FZ-1000 $25000/5 Years)
    10 Depriciation Expense $500
    Allowance for Depriciation
    (Depriciation on new fridge 4000/4years * 6/12 months)
    10 Depriciation Expense $500
    Allowance for Depriciation
    (Depriciation on the fridge sold)
    11 Income Tax expense $7,575
    Accrued Taxes

    12 Cost of goods sold $60,000


    Inventory

    Year 2014
    1 Cash $295,500
    Bank Charges(150000 sales *3%) $4,500
    Sales

    2 Marketable Securities (3 years) $30,000


    Cash

    3 Rent Expense $36,000


    Cash
    (2000 per month +$1000 per month)* 12 months
    4 (a) Purchase $120,000
    Account Payable

    4(b) Account Payable $116,000


    Cash

    5 COGS $115,000
    Inventory

    6 Salary Payable $5,000


    Tax Payable $7,575
    Cash
    7 Advertising Expense $6,000
    Salary Expense $62,000
    Utilities Expense $5,000
    Cash

    8 Dividend $12,500
    Cash

    9 Tax Expense $16,600


    Accrued Taxes

    10 Depriciation Expense $6,000


    Allowance for Depriciation

    11 Interest Income $1,800


    Income Recievable

    12 Business License Expense $900


    Prepaid Business License
    Credit

    $100,000

    $190,000

    $72,000

    $2,000

    $47,000

    $31,000

    $2,000

    $3,000

    $1,800

    $900
    $24,000
    $55,000
    $5,000

    $3,600

    $5,000

    $500

    $500

    $7,575

    $60,000

    $300,000

    $30,000

    $36,000

    $120,000

    $116,000

    $115,000
    $12,575
    $73,000

    $12,500

    $16,600

    $6,000

    $1,800

    $900
    Balance Sheet
    Cash $ 141,325 Account Payables $ 29,000
    Inventory $ 15,000 Tax Payable $ 16,600 $ 45,600
    Income Recievable $ 1,800 Common Stock $ 100,000
    Marketable Securities $ 30,000 Retained Earnings $ 72,525
    Plant Property and Equipment $ 17,500 Dividend $ 12,500 $ 60,025
    $ 205,625 $ 205,625
    INCOME STATEMENT

    Sales $ 300,000
    COGS $ 115,000
    Gross Profit $ 185,000
    Bank Charges $ 4,500
    Advertising $ 6,000
    Salaries $ 62,000
    Utilities $ 5,000
    Rent expenses $ 36,000
    Dep. Expense $ 6,000 3000
    Business License $ 900 $ 120,400 900
    Income Before Interest $ 64,600 6000
    Interest Income $ 1,800 24000 Opening In
    Income before taxes $ 66,400 60000 Purchases
    Taxes $ 16,600 3600 Cloaing inv
    Net Income $ 49,800 97500 COGS
    ROA 24%
    Cash 69%
    Return on owners equity 49.80%
    Debt to equity Ratio 76%
    Acid Ratio 3.10
    10000
    120000
    -15000
    115000
    Balance sheet
    Assets
    Cash $ 141,325
    Marketable securitites $ 30,000
    Inventories $ 15,000
    Accrued Interest $ 1,800
    Total current assets $ 188,125

    Property Plant and equipment(net) $ 17,500

    Total Assets $ 205,625

    Liabilities:
    Accounts payable $ 29,000
    Accrued Taxes $ 16,600
    Total Liabilities $ 45,600

    Equtiy
    Common stock $ 100,000
    Retained earnings $ 60,025
    Total liabilities & Equity $ 205,625
    Income Statement
    Sales $ 300,000
    COGS $ 115,000
    Gross Profit $ 185,000
    Rent Expense $ 36,000
    Bank Charges $ 4,500
    Advertising Expense $ 6,000
    Salary Expense $ 62,000
    Utilities Expense $ 5,000
    Depriciation Expense $ 6,000
    Business License Expense $ 900
    Operating Income $ 64,600
    Add:Interest Income $ 1,800
    Income Before Tax $ 66,400
    Tax expense(66400*25%) $ 16,600
    Net Income $ 49,800

    Notes:
    1) Opening Inventory 10000
    Purchases 120000
    Cloaing invetory -15000
    COGS 115000

    2) Income Tax rate 25%


    (7575/30300)

    3) Payment To Accounts Payable


    Opening Balance 25000
    Add:Purchases 120000
    Less:Closing Balance -29000
    Cash Payment 116000

    4) Since refigerator bought (FZ-1000) IS A LONG TERM


    asset is generally shown at book value
    so a decrease in market value does not afect book prices

    5) Dividends of $12500 are deducted from


    retained earnings
    Corrections:

    2)
    Entry is correct
    Accounting rule:Debit all expenses and credit all incomes
    so
    Cash 290000
    Sales 290000

    is the correct entry

    6)
    2013
    Accounts Payable
    Opeing BalNil
    Purchases 72000
    Closing Ba 25000
    Cash Paid 47000

    You might also like