Question

On December 1, 2018, "JAA Retailer" begins its activities with the following balance sheet:

Cash Wells Fargo $ 17,740.00

Accounts receivable $ 4,140.00 Properties, Plant and Equipment $ 12,360.00

Accounts payable $ 5,240.00

Inventories $ 35,000.00

Retained Earnings $ 64,000

December 4, 1997.- Merchandise is purchased for $ 34,900.00 according to Invoice No. 111 of Comercializadora "XYZ", paying 20% ​​cash and the rest within a term of 30 days.

December 6, 1997.- The expenses incurred by the company destined to obtain its registration in the register of companies amount to $ 2,450.00. amount paid in cash.

December 8, 1997.- The company acquires a loan from Banco de Crédito for $ 30,000.00 payable in 4 annual installments as of the date, with an interest of 2% per month and a single commission of 1.5%, being discounted at the time of the transaction is made (the interest corresponds to only one month). Deposit in Wells Fargo.

December 10, 1997.- The company decides to open a current account No. 123 in Banco Chase, for this purpose it allocates $ 30,000.00 of which it uses $ 250.00 for the purchase of a check book and $ 95.00 for forms and others.

December 12, 1997.- Pepe Reyes, a customer of the company, deposits $ 15,000.00 directly into the current account of Banco Chase for future purchases of merchandise he will make.

December 14, 1997.- Merchandise sold for $ 49,300.00 according to Invoice No. 333 to Cooperativa "Versailles", charging 30% and for the balance a 30-day term credit is subscribed.

December 16, 1997.- The company purchases a computer equipment for $ 5,200.00 according to Best Buy's No 256, paying 40% with Chase Bank's check and for the balance two bills of exchange are subscribed. to 5 and 10 days term respectively.

December 18, 1997.- The company deposits $ 7,500.00 to Martínez Suppliers for the purpose of reserving goods to be purchased later.

December 20, 1997.- The company obtains $ 1,760.00 in check to be deposited in the Wells Fargo Bank for commissions

December 22, 1997.- The owner of the company decides to contribute to this a car, whose value according to independent expert amounts to $ 15,000.00.

December 24, 1997.- Through a check from Banco Chase, the company cancels its first account payable subscribed on December 4.

December 26, 1997.- The company, in accordance with its interests, signs a 90-day fixed-term deposit with Banco de América with a par value of $ 8,750.00 at 18% annual interest.

December 28, 1997.- The representatives of Cooperativa "Versailles" pay the company 50% of the goods on credit given on December 14.

December 30, 1997.- The company makes the following payments: $ 4,240.00 with Banco Chase check for payroll $ 2,040.00 with the Bank's check for rent. $ 853.00 in cash for minor office expenses. It is requested:

1. Prepare the Journal Seats

2. Prepare the Checking Balance

3. Results State

4. General Balance

Answer 1

JAA Retailer

Balance Sheet December 1, 2018

Liabilities		Assets
Retained Earnings	64,000	Properties, Plant & Equipment	12,360
Accounts Payable	5,240	Accounts Receivable	4,140
		Inventories	35,000
		Cash Wells Fargo	17,740

Journal Entries

Dec 4, 1997

Inventories Dr. 34,900

TO Cash Account Cr. 6,980

To XYZ Creditor Acct. Cr. 27,920

(Being amount paid to XYZ on account of purchase of inventory vide Invoice No. 111)

Dec 6, 1997

Registration Exp Dr. 2450

To Cash account Cr. 2450

(Being amount paid on account of registration in the Register of Companies)

Dec 8, 1997

Wells Fargo Acct. Dr. 29550

Commission on Loan Dr. 450

To Loan from BANCO DE Credito Cr. 30000

(Being loan obtained from Banco De Credito for $30000 after 1.5% commisison)

Dec 10, 1997

Banco Chase Current Acct Dr. 30000

To Wells Fargo Account Cr. 30000

(being account opened in Banco Chase )

Check Book Charges Acct Dr. 250

Forms Charges Acct. Dr. 95

TO Banco Chase Acct. Cr. 345

(being amount paid to obtain check book and forms)

Dec 12, 1997

Banco Chase Current Acct. Dr. 15,000

To Pepe Reyes Advance Acct. Cr. 15,000

(Being Advance received from Pepe Reyes)

Dec. 14, 1997

Versailles Receivable Acct. Dr. 34,510

Wells Fargo Cash Acct. Dr. 14,790

To Sales Account Cr. 49,300

(Being sales made to Versailles on account of Invoice No. 333)

Dec, 16, 1997

Computer Equipment Dr. 5,200

To Banco Chase Acct. Cr. 2,080

To Bills of Exchange Cr. 3,120

(Being computer equipment purchased with 40% payment from Banco Chase acct .and rest in 2 Bills of Exchange with 5 & 10 day term)

Dec 18, 1997

Martinez Supplier Supplier Acct. Dr. 7,500

To Banco Chase Current acct. Cr. 7,500

(being Deposit made with Martinez Supplier for reserving goods)

Dec. 20, 1997

Wells Fargo Acct. Dr. 1,760

To Commission Income Cr. 1,760

(Being commission income check deposited in Wells Fargo)

Dec 22, 1997

Car Acct. Dr. 15,000

To Banco Chase Current Acct. Cr. 15,000

(Being amount contributed towards purchase of Car)

Dec 26, 1997

Fixed Term Deposit acc. Dr. 8750

To Banco Chase Current Account Cr. 8750

(Being Term Deposit started with Banco De America)

Dec 28, 1997

Banco Chase Current Acct. Dr. 17255

To Vesailles Receivable Acct. Cr. 17255

(being 50% of amount received for sales made on Dec 14)

Dec 30 ,1997

Salary Account Dr. 4240

To Banco Chase Acct. Cr. 4240

(Being amount paid on account of payroll)

Rent Account Dr. 2040

To Banco Chase Acct. Cr. 2040

(Being amount paid on account of rent)

Office Expenses Dr. 853

To Wells Fargo Acct. Cr. 853
(Being amount paid in cash for minor office expenses)