Question

Need general journal entrys for these...

1. The owner contributes to the company $2400 in a piece of equipment.

2. A purchase in account of merchandise available for sale (perpetual system used) for $1600.

3. A cash sale for an amount equal to 1600.

4. A sale on account for an amount equal to 1200.

5. Utilities services consumed this month will be paid next month according to the invoice received. The invoice is for an amount equal to $720.

6. Advanced payment made in cash from a customer for a future delivery of goods equal to $400.

7. At the end of the period noticed that all the goods for resale (inventory) have been sold.

8. Received the bank statement and since you did not keep the minimum balance, it was debited from your account bank fees for $160.

9. Pay 50% of the amount due for the merchandise acquired for resale.

10. The depreciation of the equipment is 5% of its acquisition cost.

STEP 2: Prepare and print the Income Statement and Balance Sheet for the period and also your general journal showing your journal entries.

Answer 1

Journal entries are as prepared below:

Date	Particulars	L.F	Amount ($)	Amount ($)
1	Equipment		2,400
	Owner's capital			2,400
	(for oner contributes)
2	Merchandise Inventory		1,600
	Account Payable			1,600
	(for inventory purchased)
3	Cash		1,600
	sales			1,600
	(for cash sales)
4	Account Receivable		1,200
	sales			1,200
	(for on account sales)
5	Utilities Expense		720
	Utilities payable			720
	(for utilities expensse billed)
6	Cash		400
	Advances from customers			400
	(for advance received)
7	Cost of goods sold		1,600
	Merchandise Inventory			1,600
	(for cost of goods sold recorded)
8	Bank Charges		160
	Cash			160
	(for bank charges debited)
9	Account payable		800
	cash			800
	(for cash paid for merchandise purchased)
10	Depreciation equipment		120
	Accumulated dep-equipment			120
	(for depreciation recorded)

Income Statement and the Balance sheet is as prepared below:

Income Statement
For the Year Ended Dec 31, 20XX
Particulars	Amount ($)	Amount ($)
Sales		2,800
Less: Cost of goods sold		$1,600
Gross Profit		$1,200
Utilities expense	720
Depreciation expense	120
Bank Charges	160
Net income		200

Statement of owner's equity
For the Year Ended Dec 31, 20XX
Particulars	Amount ($)	Amount ($)
Opening capital		0
Add:
Addition of capital	2,400
Net income	200
Less:
Drawings	0
Closing capital		2,600

Balance Sheet
As at Dec 31,20XX
Particulars	Amount ($)	Amount ($)
ASSETS
Current Assets:
Cash	1,040
Account receivable	1,200
Inventory	0
Total Current Assets		2,240
Equipment	2,400
Less: Accumulated dep Equipment	120	2,280
Total Assets		4,520
LIABILITIES AND STOCKHOLDERS EQUITY
Liabilities :
Current Liabilities
Accounts Payable	800
Utilities Payable	720
Advances from customers	400
Total Current Liabilities		1,920
Total Stockholders' Equity
Owners capital	2,600
Total Stockholders' Equity		2,600
Total Liabilities and stockholders’ equity		4,520