Example 1-ABC Company
On April 01, 2020 ABC Company started business with $ 100,000 and other transactions for the month are:
2. Purchase Furniture for Cash $ 12,000.
8. Purchase Goods for Cash $ 20,000 and for Credit $10,000 from XYZ Retail Store.
14. Sold Goods to BBB Company $15,000 on credit and Cash Sales $5,000.
18. Owner withdrew of worth $ 6,000 for personal use.
22. Paid XYZ Retail Store $ 5,000.
26. Received $ 10,000 from BBB Company.
30. Paid Salaries Expense $ 3,000 for employees.
Information for Adjusting Entry:
-
Assume Depreciation Expense for furniture =$200
-
Assume ending inventory = $18,000
Required:
-
Prepare General Journal
-
Prepare General Ledger
-
Prepare Trial Balance
-
Make Adjusting Entry
-
Prepare Adjusted Trial Balance
-
Prepare income statement
-
Statement of Change in Equity
-
Prepare balance sheet
-
Make closing entry
-
Prepare Post (After) Closing Trial Balance
Answer
1. General Journal
Date |
Account title and Description |
Debit (Dr.) |
Credit (Cr.) |
||
April,01 |
Cash |
100,000 |
|||
Equity |
100,000 |
||||
ABC inject capital |
|||||
April, 02 |
Office Furniture |
12,000 |
|||
Cash |
12,000 |
||||
Bought furniture in cash |
|||||
April, 08 |
Purchase |
30,000 |
|||
Cash |
20,000 |
||||
Account Payable (AP) |
10,000 |
||||
Purchased goods on credit and cash |
|||||
April, 14 |
Account Receivable (AR) |
15,000 |
|||
Cash |
5,000 |
||||
Sale |
20,000 |
||||
Sold goods on credit and in cash |
|||||
April, 18 |
Drawing |
6,000 |
|||
Cash |
6,000 |
||||
Owner withdrew cash for personal use. |
|||||
April, 22 |
Account Payable |
5,000 |
|||
Cash |
5,000 |
||||
Paid XYZ retail store |
|||||
April, 26 |
Cash |
10,000 |
|||
Account Receivable |
10,000 |
||||
Received cash from BBB Company |
|||||
April, 30 |
Salary Expense |
3,000 |
|||
Cash |
3,000 |
||||
Salary Expense for April |
|||||
3. Prepare Trial Balance
ABC Company |
||
Trial Balance |
||
30-Apr-20 |
||
Debit |
Credit |
|
Cash |
69,000 |
|
Equity |
100,000 |
|
Office Furniture |
12,000 |
|
Purchase |
30,000 |
|
Account Payable |
5,000 |
|
Account Receivable |
5,000 |
|
Sale |
20,000 |
|
Drawing |
6,000 |
|
Salary Expense |
3,000 |
|
Total |
125,000 |
125,000 |
4. Adjusting Entry
Debit |
Credit |
||||||||
April, 30 |
Depreciation Expense |
200 |
|||||||
Accumulated Depreciation |
200 |
||||||||
Depreciation expense of Furniture for April |
|||||||||
Assume Ending Inventory |
18,000 |
ស្តុក(ទំនិញ)នៅសល់ចុងគ្រា(លក់មិនទាន់អស់) |
|||||||
April, 30 |
ព្រោះយើងសន្មតថាថ្លៃទំនិញបានលក់ចេញ |
12,000 |
|||||||
Cost goods sold |
30,000 |
||||||||
Purchase |
30,000 |
||||||||
Inventory |
18,000 |
||||||||
Cost of goods sold |
18,000 |
12 |
|||||||
5. Adjusted Trial Balance ( TB + adjusting Entry)
ABC Company |
||
Adjusted Trial Balance |
||
30-Apr-20 |
||
Debit |
Credit |
|
Cash |
69,000 |
|
Equity |
100,000 |
|
Office Furniture |
12,000 |
|
Account Payable |
5,000 |
|
Account Receivable |
5,000 |
|
Sale |
20,000 |
|
Drawing |
6,000 |
|
Purchase |
0 |
|
Salary Expense |
3,000 |
|
Depreciation Expense |
200 |
|
Accumulated Depreciation |
200 |
|
Cost goods sold |
12,000 |
|
Inventory |
18,000 |
|
Total |
125,200 |
125,200 |
6. Income Statement
ABC Company |
||
Income Statement |
||
30-Apr-20 |
||
Revenue |
||
Sale |
20,000 |
|
Expense : |
||
Cost goods sold |
12,000 |
|
Salary Expense |
3,000 |
|
Depreciation Expense |
200 |
|
Total Expense |
15,200 |
|
Profit |
4,800 |
|
7. Statement of Change in Equity
ABC Company |
|
Statement of Change in Equity |
|
30-Apr-20 |
|
Ending Equity : |
|
Beginning Capital |
100,000 |
Additional Capital |
0 |
Profit(loss) |
4,800 |
Drawing/ Dividend |
(6,000) |
Ending Equity |
98,800 |
8. Balance Sheet
ABC Company |
||
Balance Sheet |
||
30-Apr-20 |
||
Assets: |
||
Cash |
69,000 |
|
Office Furniture |
12,000 |
|
Account Receivable |
5,000 |
|
Accumulated Depreciation |
(200) |
|
Inventory |
18,000 |
|
Total Assets |
103,800 |
|
Liability: |
||
Account Payable |
5,000 |
|
Equity: |
||
Ending Equity |
98,800 |
|
Total Liability and Equity |
103,800 |
|
9. Closing Entry
Revenue |
|||||
Expense |
|||||
Income Summary ( profit/loss) |
|||||
Drawing (option) |
|||||
Date |
Account title and Description |
Debit (Dr.) |
Credit (Cr.) |
||
a. Close Revenue |
|||||
April, 30 |
Sale |
20,000 |
|||
Income Summary |
20,000 |
||||
b. Close Expenses |
|||||
April, 30 |
Income Summary |
15,200 |
|||
Salary Expense |
3,000 |
||||
Depreciation Expense |
200 |
||||
Cost goods sold |
12,000 |
||||
c. Close Income summary ( profit) |
|||||
April, 30 |
Income Summary |
4,800 |
|||
Equity ( capital) |
4,800 |
||||
d. Close Drawing |
|||||
April, 30 |
Equity |
6,000 |
|||
Drawing |
6,000 |
||||
10. After Closing Trial Balance
( Asset, Liability, Equity) |
||
ABC Company |
||
After Closing Trial Balance |
||
30-Apr-20 |
||
Debit |
Credit |
|
Cash |
69,000 |
|
Office Furniture |
12,000 |
|
Account Receivable |
5,000 |
|
Accumulated Depreciation |
200 |
|
Inventory |
18,000 |
|
Account Payable |
5,000 |
|
Ending Equity |
|
98,800 |
Total |
104,000 |
104,000 |