Cash

Debit
Opening Balance
Notes Payable
Capital
Sales Revenue
Accounts Receivable

Opening Balance

Accounts Payable
Debit
Cash

Closing Balance

Utilities Expense
Debit
Cash
Utilities Payable

Utilities Payable
Debit

Closing Balance

Journal Entries
Particulars
Cash A/C
To sales(from cash sales)
Accounts Receivable
To sales(from credit sales)
Cash A/C
To Accounts Received(payment of credit sales)
Accounts Payable
To Cash(payment of cash for merchandise)
Inventory
To Accounts Payable(Merchandise purchased on credit)
Cost of Goods Sold A/C
To Inventory(sale of inventory)
Wages A/C
To cash(payment of wages to employees)
Wages A/C
To wages payable(wages unpaid at the end of period)
Prepaid Rent A/C
To Cash(rent paid for October in advance)
Prepaid Insurance
To Cash(Insurance amount paid for entire year)
Utilities Expense
To Utilities Payable(unpaid bills for utilities)
Sign A/C
To Cash(for purchase of Sign)
To Accounts Payable
Adjusting Entries
Depreciation(Furniture and Fixtures) A/C
To Accumulated Depreciation(Furniture and Fixtures)(depreciation of fixed assets)
Insurance
To prepaid Insurance(Insurance paid for current month)
Interest Expense A/C
To Interest Payable(Interest accrued for current month)

Sr. No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
 Cash
Debit Credit
0 Rent 1485
100000 Furniture and Fixtures 15500
65000 Advertisement Expense 1320
38000 Wages Expense 935
3614 Office Supplies Expense 1100
Utilities Expense 275
Accounts Payable 96195
Wages Expense 688
Prepaid Insurance 2310
Prepaid Rent 1485
Sign 660
Closing Balance 84661
206614 206614
84661

Accounts Payable
Debit Credit
96195 Opening Balance 0
Inventory 137500
Inventory 49940
92345 Sign 1100
188540 188540
Opening Balance 92345
Utilities Expense
Debit Credit
275
226 Transfer to Income Statement 501
501 501

Utilities Payable
Debit Credit
Opening Balance 0
226 Utilities Expense 226
226 226
Opening Balance 226

Journal Entries
Debit Credit
38000
38000
14850
14850
 3614
3614
96195
96195
49940
49940
38140
38140
688
688
440
440
1485
1485
2310
2310
226
226
1760
660
1100
Adjusting Entries
129.166666666667
depreciation of fixed assets) 129.166666666667
192.5
192.5
1250
1250
Trial Balance
Particulars Debit Credit
Cash 84661
Capital 65000
Note Payable 100000
Rent Expense 1485
Inventory 149300
Accounts Payable 92345
Furniture and Fixtures 15500
Advertisement Expenses 1320
Wage Expenese 2063
Office Supplies 1100
Utilities Expense 501
Sales Revenue 52850
Accounts Receivable 11236
Cost of Goods Sold 38140
Insurance Expense 192.5
Utilities Payable 226
Sign 1760
Wages Payable 440
Prepaid Rent 1485
Prepaid Insurance 2117.5
Accumulated Depreciation(Furniture and Fixtures) 129.16666667
Depreciation (Furniture and Fixtures) 129.166666666667
Interest Expense 1250
Interest Payable 1250
312240.166666667 312240.16667
 Notes Payable
Debit Credit
Opening Balance 0
Closing Balance 100000 Cash 100000
100000 100000
Opening Balance 100000

Interest Expense
Debit Credit
Interest Payable 1250 Transfer to Income Sta 1250
1250 1250

Furniture and Fixtures

Debit Credit
Opening Balance 0
Cash 15500 Closing Balance 15500
15500 15500
Opening Balance 15500

Sales Revenue
Debit Credit
Cash 38000
Transfer to Income Statement 52850 Accounts Receivable 14850
52850 52850

Sign
Debit Credit
Opening Balance 0
Cash 660
Accounts Payable 1100 Closing Balance 1760
1760 1760
Opening Balance 1760
Accumulated Depreciation(Furn
Debit

Closing Bal 129.1667

129.1667
 Capital
Debit Credit
Opening Balance
Closing Balance 65000 Cash
65000
Opening Balance

Interest Payable
Debit Credit
Opening Balance
Closing Balance 1250 Interest Expense
1250
Opening Balance

Advertisement Expense
Debit Credit
Cash 1320 Transfer to Income Statement
1320

Accounts Receivable
Debit Credit
Opening Balance 0 Cash
Sales Revenue 14850 Closing Balance
14850
Opening Balance 11236

Wages Payable
Debit Credit
Opening Balance
Closing Balance 440 Wages Expense
440
Opening Balance

Accumulated Depreciation(Furniture and Fixtures)

Credit
Opening Balance 0
Depreciation(Furniture and Fixtures) 129.16666667
129.16666667
Opening Balance 129.16666667
Income Statement
Sales Revenue 52850
Cost of Goods Sold 38140
Gross Profit 14710

S.G.A. 5561.5
EBITDA 9148.5
Depreciation 129.16666667
EBIT 9019.3333333
Interest 1250
EBT/PBT 7769.3333333
 Credit
0
65000
65000
65000

able
Credit
0
1250
1250
1250

Expense
Credit
1320
1320

ivable
Credit
3614
11236
14850

ble
Credit
0
440
440
440

Depreciation(Furniture and Fixtures)

Debit
Accumulated Depreciation(Furniture and Fixtures) 129.166666667
129.166666667
 Balance Sheet of PC Depot as on September 30th
Assets
Current Assets
Cash 84661
Inventory 149300
Accounts Receivable 11236
Prepaid Rent 1485
Prepaid Insurance 2117.5
Office Supplies 1100
Total Current Assets 249899.5

Non Current Assets

Furniture and Fixtures 15500
Depreciation 129.166666667
Furniture and Fixtures(-depreciation) 15370.8333333
Sign 1760
Total Non-Current Assets 17130.8333333

Total Assets 267030.333333

 Rent Expense
Debit Credit
Cash 1485 Transfer to Income Statement 1485
1485 1485

Wages Expense
Debit Credit
Cash 935
Cash 688
Wage Payable 440 Transfer to Income Statement 2063
2063 2063

Cost of Goods Sold

Debit Credit
Inventory 38140 Transfer to Income Statement 38140
38140 38140

Prepaid Rent
Debit Credit
Opening Balance 0
Cash 1485 Closing Balance 1485
1485 1485
Opening Balance 1485

niture and Fixtures)

Credit
Transfer to Income Statement 129.16666667
129.16666667
pot as on September 30th
Liabilites
Current Liabilities
Accounts Payable 92345
Wages Payable 440
Interest Payable 1250
Utilities Payable 226
Total Current Liabilities 94261

Long Term Liabilities

Notes Payable 100000
Total Long Term Liability 100000

Owners' Equity
Capital 65000
Retained Earnings 7769.3333333
Total Owners'Equity 72769.333333

Total Liabilities and Owners' Equity 267030.33333

 Inventory
Debit Credit
Opening Balance 0 Cost of Goods Sold 38140
Accounts Payable 137500
Accounts Payable 49940 Closing Balance 149300
187440 187440
Opening Balance 149300

Office Supplies
Debit Credit
Opening Balance 0
Cash 1100 Closing Balance 1100
1100 1100
Opening Balance 1100

Insurance Expense
Debit Credit
Prepaid Insurance 192.5 Transfer to Income Statement 192.5
192.5 192.5

Prepaid Insurance
Debit Credit
Opening Balance 0 Insurance Expense 192.5
Cash 2310 Closing Balance 2117.5
2310 2310
Opening Balance 2117.5