Example 9-CBA Company
On July, Year 1, CBA Company transactions for the month are:
- Company borrowed from bank $10,000 and interest rate 0.98% per month
- Company injected more capital by cash $50,000
- Company Purchase goods for sale $12,000 from AAA Company on credit
- Received invoice $ 590 for utilities expense. And the end of last month company estimated $600
- Paid $8000 to AAA Company for credit on purchase on 7 July by cheque
- Sold goods to CCC customer $9,000 in cash
- Owner withdraw $30,000 by cheque to buy car for use in business
- Sold goods to DDD Company on credit $5,000
- Paid AAA Company $4,000 by cash
- Received cash from DDD Company $4,980 and discount allowed $20 for credit sale on 21, July
- Paid interest expense borrowed from bank at 1, July
- Paid office rental $1,000
- Paid salary to employees $2,000
Additional information
- Assume the car has useful life 10 years.
- Utilities expense are estimated $750 on July
- Assume ending inventory 10,000
- After Closing Trial Balance
| CBA Company | ||
| After Closing Trial Balance | ||
| 30 June, Year 1 | ||
| Debit | Credit | |
| Cash | 6,600 | |
| Cash at bank | 31,300 | |
| Land | 20,000 | |
| Office equipment ( note 1) | 19,200 | |
| Inventory | 7,960 | |
| Accumulated Depreciation | 800 | |
| Accrued Utilities | 600 | |
| Ending Equity | 83,660 | |
| Total | 85,060 | 85,060 |
Note 1: assume depreciation expense of $400
You are required to:
- Prepare General Journal
- Prepare General Ledger
- Prepare Trial Balance
- Make Adjusting Entry
- Prepare Adjusted Trial Balance
- Prepare income statement
- Prepare Statement of Change in Equity
- Prepare balance sheet
- Make closing entry
- Prepare Post (After) Closing Trial Balance