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Excercise

JHJ ATHELITIC SHOE STORE
FINANCIALS TRANSACTION END OF YEAR 2014
Account Balances
ASSETS	Totals
Cash	$ 891,500.00
Accounts Receivable	$ 2,203,500.00
Merchandise Inventory	$ 200,000.00
Office Supplies	$ 12,500.00
Auto	$ 15,000.00
Acc. Depre. - Equip	$ 20,000.00
Prepaid Insurance	$ 25,500.00
LIABILITIES + STOCKHOLDER'S EQUITY
Accounts Payable	$ 1,350,000.00
JHJ Common Stock	$ 400,000.00
Retained Earnings	$ 1,598,000.00
Beginning shoe inventory
8000 @ 12.50
5000 @ 20.00
I. Post previous account balances to the ledger. (T-Accounts)
II. Journalize the following transactions for 2015
1. Invested $750,000 in additional capital into business.		$ 250,000.00
2. Purchased 15,000 pairs of shoes on account @ $25.00 each.		$ 350,000.00
3. Purchased 12,000 pairs of shoes on account @ $35.00 each.		$ 487,500.00
4. Cash sale of shoes 22,500 pair @ $75.00 each		$ 936,000.00
5. Sold on account 12000 pairs of shoes @ $75.00		$ 1,500.00
6. Purchase 2 year insurance policy for $36,000 in June.		$ 450,000.00
7. Purchased 10,000 pairs of shoes on account @ $45.00 each.		$ 10,000.00
8. Paid rent expense of $90,000.		$ 50,000.00
9. Paid salaries of $20,000
10. Purchased $75,000 supplies on account for during the period.		$ 75,000.00
11. Paid $75,000 on accounts payable.		$ 120,000.00
12. Received $120,000 from credit customer.		$ 1,487,500.00
14. Purchased 18,000 pairs of shoes on account @ $55.00 each.		$ 65,000.00
13. Cash sale of shoes 17,500 pair @ $85.00 each		$ 10,000.00
14. Declared $60,000 in dividends for the year		$ 12,500.00
15. Auto depreciation expense for the period, $10,000
16. Recorded supplies balance at the end of the period $5000.
17. Recorded expiration 1 year of insurance for the period.
III. Post journal entries to the ledger.
IV. Prepare Trial Balance
V. Prepare income statement
VI. Prepare statement of Onwer's Equity
VII. Prepare Balance Sheet

Journal Entries

Date

ACCT #

Journal Entry

Dr.

Cr.

Trans Ref

Horaxe G. Payne Jr. Accounting 231 11:00am

T-Accts - 1

Horace G Payne Jr
PERMANENT ACCOUNTS
	Cash 100		Accounts Receivable 112		Merchandise Inventory 115		Office Supplies 116
							$ - 0
							Prepaid Insurance 117
			$ - 0		$ - 0
			Allow. for Doubtful Acct		Equipment 125
							$ - 0
							Accd Depre. - Equip 126
	$ - 0			$ - 0	$ - 0
								$ - 0
	Auto 123		Common Stock 310		Dividends 312
							Retained Earnings 311
	$ - 0			$ - 0	$ - 0
	Accd Depre. - Auto 126		Sales Revenue 410
								$ - 0
		$ - 0		$ - 0
	Accts Payable 210		Wages Payable 211		Notes Payable 214		Unearned Sales Revenue 215
				$ - 0		$ - 0		$ - 0
		$ - 0
	Customer Refunds payable 212
		$ - 0
TEMPORARY ACCOUNTS
	Wages Expense 520		Advertising Expense 521		Credit card expense 515		Insurance Expense 533
	$ - 0		$ - 0		$ - 0		$ - 0
	Rent Expense 531		Depreciation Expense - Equip 532		Supplies Expense 534		Cost of merchandise sold 515
	$ - 0		$ - 0		$ - 0		$ - 0

Inventory Sheet

DATE	PURCHASES			COST OF GOODS SOLD			ENDING BALANCE
	QT	UNIT COST	TOTAL	QT	UNIT COST	TOTAL	QT	UNIT COST	TOTAL
BEG. INV	10,000	$ 20.00

Trial Bal. & State

JHJ Rental Service			JHJ Rental Service
Adjusted Trial Balance			Income Statement
Account	Dr.	Cr.	For the Year Ended 2016
Cash	$ - 0		Sales	$ - 0
Accounts Receivable	$ - 0		Less cost of goods sold	$ - 0
Allow. for Doubtful Acct		$ - 0	Total Income		$ - 0
Merchandise Inventory	$ - 0
Office Supplies	$ - 0		Operating Expenses:
Auto	$ - 0		Salaries Expense	$ - 0
Acc. Depre. - Auto		$ - 0	Depreciation Expense	$ - 0
Equipment	$ - 0		Rent Expense	$ - 0
Acc. Depre. - Equip	$ - 0	$ - 0	Insurance Expense	$ - 0
Land			Supplies Expense	$ - 0
Prepaid Insurance	$ - 0		Advertising Expense	$ - 0
Accounts Payable		$ - 0	Interest Expense	$ - 0
Notes Payable		$ - 0	Delivery Expense
Wages Payable		$ - 0	Miscellaneous Expense
Customer Refunds payable		$ - 0	Total Expenses	$ - 0
Unearned Income		$ - 0			$ - 0
Common Stock		$ - 0
Retained Earnings		$ - 0
Dividends	$ - 0
Car Rental Revenue		$ - 0
Cost of Goods Sold	$ - 0
Salaries Expense	$ - 0		JHJ Rental Service
Rent Expense	$ - 0		Statement of Retained Earnings
Supplies Expense	$ - 0		For the Year Ended 2016
Credit Card Expense	$ - 0		Beginning Capital		$ - 0
Insurance Expense	$ - 0		Capital Additions
Advertising Expense	$ - 0		Net Income	$ - 0
Delivery Expense			Less Dividends	$ - 0
Depreciation Expense	$ - 0		Ending R/E		$ - 0
Miscellaneous Expense
TOTAL	$ - 0	$ - 0
JHJ Rental Service
Balance Sheet
As of December 31, 2015
Assets:			Liabilities & Owner's Equity:
Cash		$ - 0	Accounts Payable	$ - 0
Accounts Receivable		$ - 0	Notes Payable	$ - 0
Merchandise Inventory		$ - 0	Wages Payable	$ - 0
Office Supplies	$ - 0	$ - 0	Customer Refunds payable	$ - 0
Auto	$ - 0	$ - 0	Unearned Income	$ - 0
Acc. Depre. - Equip	$ - 0
Equipment	$ - 0	$ - 0
Acc. Depre. - Equip	$ - 0	$ - 0	Total Liabilities		$ - 0
Land		$ - 0	Stockholder's Equity
Prepaid Insurance		$ - 0	Common Stock	$ - 0
			Retained Earnings	$ - 0
			Total Stockholder's Equity		$ - 0
Total Assets		$ - 0	Total Liabilities & Owner's Equity		$ - 0

Sheet1

Cash

AFBD

INV

SUP

PPI

EQU

ADE

AUT

ADA

UER

$ - 0

Closing Entries

ACCT #	Journal Entry	Dr.	Cr.	Trans Ref
410	Sales Revenue
999	Income Summary
	Closing of revenue account
999	Income Summary
510	Cost of goods sold
520	Salaries Expense
532	Depreciation Expense
533	Insurance Expense
534	Supplies Expense
	Closing of expense accounts
999	Income Summary
311	Retained Earnings
	Closing of income summary account
311	Retained Earnings
312	Dividends
	Closing of dividend account

Horaxe G. Payne Jr. Accounting 231 11:00am

Closing T-Accts

Horace G Payne Jr
PERMANENT ACCOUNTS
	Cash 100		Accounts Receivable		Merchandise Inventory 115		Prepaid Insurance 117
					$ 120,000.00
							$ - 0
							Land 120
			$ - 0		$ 120,000.00
							$ - 0
							Auto 123
			Common Stock 310		Office Supplies 116		$ - 0
							Equipment 125
	$ - 0			$ - 0	$ - 0
							$ - 0
	Car Rental Revenue 410		Retained Earnings 311
							Dividends 312
$ 105,000.00
		$ - 0		$ - 0			$ - 0
	Accd Depre. - Auto 124		Accts Payable 210		Wages Payable 211		Notes Payable 212
		$ - 0		$ - 0		$ - 0		$ - 0
	Accd Depre. - Equip 126				Unearned Revenue 212
		$ - 0				$ - 0
TEMPORARY ACCOUNTS
	Wages Expense 520		Advertising Expense 521		Interest Expense 710		Insurance Expense 533
	$ - 0		$ - 0		$ - 0		$ - 0
	Rent Expense 531		Depreciation Expense - Equip 532		Supplies Expense 705		Income Summary
	$ - 0		$ - 0		$ - 0
	Cost of merchandise sold 515
	$ - 0							$ - 0

Post CLS Trial Bal

JHJ Rental Service
Post Close Trial Balance
Account	Dr.	Cr.
Cash	$ - 0
Accounts Receivable	$ - 0
Merchandise Inventory	$ 120,000.00
Supplies	$ - 0
Equipment	$ - 0
Acc. Depre. - Auto
Acc. Depre. - Equip		$ - 0
Prepaid Insurance	$ - 0
Accounts Payable		$ - 0
Notes Payable		$ - 0
Wages Payable		$ - 0
Unearned Income		$ - 0
Common Stock		$ - 0
Retained Earnings		$ - 0
TOTAL	$ 120,000.00	$ - 0