Journal Entries

Date Account Title and Explanation P.R.

20x1
1 Cash 110
Sales 410
cash sales

2 Accounts Receivable 120

Sales 410
sales on account

3 Purchases 510
Accounts Payable 210
purchases on account

4 Transportation In 530
Cash 110
freight costs incurred on purchases

5 Accounts Payable 210

Purchase Returns & Allowances 520
purchase returns

6 Salaries Expense 540

Cash 110
payment of salaries

7 Utilities Expense 530

Cash 110
payment of utility bills

8 Cash 110
Accounts Receivable 120
collection of accounts receivable

9 Accounts Payable 210

Cash 110
payment of accounts payable

10 Withdrawals 420
Cash 110
withdrawals of the owner from the business
 GJ1 Adjusting Entries

Debit Credit Date

20x1
80,000 Dec. 31
80,000 (a)

130,000 31
130,000 (b)

70,000 31
70,000 (c)

5,000
5,000

Closing Entries
10,000
10,000 Date
20x1
Dec. 31
60,000
60,000

20,000 31-Dec
20,000

200,000
200,000

60,000 31-Dec
60,000

31-Dec
80,000
80,000

Reversing Entries
Date
Adjusting Entries

Account Title and Explanation P.R. Debit

Depreciation Expense 140 20,000

Accumulated depreciation 145
depreciation expense for the year

Merchandise Inventory, end 130 60,000

Income Summary 330
to establish ending balance of merchandise inventory

Income Summary 330 30,000

Merchandise Inventory, beg 130
to remove beginning balance of merchandise inventory

Closing Entries

Account Title and Explanation P.R. Debit

Sales 310 210,000

Purchases Returns & Allowances 520 10,000
Income Summary 330
to close temporary accounts with credit balances

Income Summary 330 175,000

Purchases 510
Transportation In 530
Salaries Expense 540
Utilities Expense 550
Depreciation Expense 560
to close temporary accounts with debit balances

Income Summary 330 75,000

Boy, Capital 310

Boy, Capital 310 80,000

Boy, Withdrawals 320

Reversing Entries
 Account Title and Explanation P.R. Debit
No Journal Entries
 GJ2

Credit

20,000

60,000

30,000

GJ3

Credit

220,000

70,000
5,000
60,000
20,000
20,000

75,000

80,000
Credit
 CASH
Date Explanation P.R. Debit Date
beg 50,000 4
1 GJ1 80,000 6
8 GJ1 200,000 7
9
10

330,000
Dec. 31 Balance 105,000

ACCOUNTS RECEIVABLE
beg 120,000
2 130,000 8
250,000
50,000

INVENTORY
beg 30,000 31-Dec
31-Dec adjustments GJ2 60,000
90,000
60,000

EQUIPMENT
beg 200,000
200,000

ACCUMULATED DEPRECIATION
beg
31-Dec

ACCOUNTS PAYABLE
5 GJ1 10,000 beg
9 GJ1 60,000 3
70,000

BOY, CAPITAL
31-Dec closing GJ3 80,000 beg
31-Dec
80,000

BOY, WITHDRAWALS
 10 GJ1 80,000 31-Dec

INCOME SUMMARY
31-Dec adjustments GJ2 30,000 31-Dec
31-Dec closing GJ3 175,000 31-Dec
31-Dec closing GJ3 75,000
280,000
0

SALES
31-Dec closing GJ3 210,000 1
30
210,000
0

PURCHASES
3 GJ1 70,000 31-Dec

PURCHASES RETURNS & ALLOWANCES

31-Dec closing 10,000 5

TRANSPORTATION IN
4 GJ1 5,000 31-Dec

SALARIES EXPENSE
6 GJ1 60,000 31-Dec

UTILITIES EXPENSE
7 GJ1 20,000 31-Dec

DEPRECIATION EXPENSE
31-Dec adjustments GJ2 20,000
31-Dec
 110
Explanation P.R. Credit
GJ1 5,000
GJ1 60,000
GJ1 20,000
GJ1 60,000
GJ1 80,000

225,000

BLE 120

GJ1 200,000
200,000

130
adjustments GJ2 30,000

30,000

140

ATION 145
80,000
adjustments GJ2 20,000
100,000

E 210
20,000
GJ1 70,000
90,000
20,000

310
300,000
closing GJ3 75,000
375,000
295,000

S 320
 closing GJ3 80,000

330
adjustments GJ2 60,000
closing GJ3 220,000

280,000

410
GJ1 80,000
GJ1 130,000
210,000

510
closing GJ3 70,000

OWANCES 520
GJ1 10,000

N 530
closing GJ3 5,000

E 540
closing GJ3 60,000

E 550
closing GJ3 20,000

NSE 560
GJ3 20,000
closing
 JIM BOY TRADING
Worksheet
For the Month Ended Decem

Trial Balance Adjustments

No. Account Title Debit Credit Debit
110 Cash 105,000
120 Accounts Receivable 50,000
130 Merchandise Inventory 30,000 b. 60,000
140 Equipment 200,000
145 Accumulated Depreciation 80,000
210 Accounts Payable 20,000
310 Jim Boy, Capital 300,000
320 Jim Boy, Withdrawals 80,000
330 Income Summary c. 30,000
410 Sales 210,000
510 Purchases 70,000
520 Purchase Returns 10,000
530 Transportation In 5,000
540 Salaries Expense 60,000
550 Utilities Expense 20,000
560 Depreciation Expense a. 20,000
620,000 620,000 110,000
Profit
TOTALS
 JIM BOY TRADING CO.
Worksheet
he Month Ended December 31, 20X1

Adjustments Adjusted Trial Balance Income Statement Balance Sheet

Credit Debit Credit Debit Credit Debit
105,000 105,000
50,000 50,000
c 30,000 60,000 30,000 60,000 60,000
200,000 200,000
a. 20,000 100,000
20,000
300,000
80,000 80,000
b. 60,000 30,000
210,000 210,000
70,000 70,000
10,000 10,000
5,000 5,000
60,000 60,000
20,000 20,000
20,000 20,000
80,000 670,000 670,000 205,000 280,000 495,000
75,000
280,000 280,000 495,000
Balance Sheet
Credit

100,000
20,000
300,000

420,000
75,000
495,000
 Jim Boy Trading Co.
Income Statement
For the Month Ended December 31, 20x1

Sales
Cost of Sales:
Merchandise Inventory, 1/1/20x1 30,000
Purchases 70,000
Less: Purchases Returns & Allowances 10,000
Net Purchases 60,000
Transportation In 5,000
Net Cost of Purchases 65,000
Goods Available For Sale 95,000
Less: Merchandise Inventory, 12/31/20x1 60,000
Gross Profit
Less: Expenses
Salaries Expense 60,000
Utilities Expense 20,000
Depreciation Expense 20,000
Net Income

Jim Boy Trading Co.

Statement of Changes in Equity
For the Month Ended December 31, 20x1

Boy, Capital 12/1/20x1

Add: Profit
TOTAL
Less: Boy, Withdrawals
Boy, Capital 12/31/20x1
 Jim Boy Trading Co.
Balance Sheet
December 31,20x1
210,000
ASSETS
Current Assets
Cash 105,000
Accounts Receivable 50,000
Merchandise Inventory 60,000
Property and Equipment (Net)
Equipment 200,000
Less: Accumulated Depreciation 100,000
35,000 Total Assets
175,000 LIABILITIES
Current Liabilities
Accounts Payable 20,000
Total Current Liabilities
100,000
75,000 OWNER'S EQUITY
Boy, Capital 12/31/20x1
Total Liabilities and Owner's Equity

300,000
75,000
375,000
80,000
295,000
215,000

100,000
315,000

20,000

295,000
315,000
 Jim Boy Trading Co.
Post-Closing Trial Balance
December 31,20x1

110 Cash 105,000

120 Accounts Receivable 50,000
130 Merchandise Inventory 60,000
140 Equipment 200,000
145 Accumulated Depreciation 100,000
210 Accounts Payable 20,000
310 Boy, Capital 295,000
Total 415,000 415,000
Reversing Entries

Date Account Title and Explanation P.R.

2023
1 Consulting Revenue 410
Fees Receivable 130
Reversing entry for fees receivable

1 Salaries Payable 220

Salaries Expense 510
Reversing entry for salaries payable
Debit Credit

10,000
10,000

1,800
1,800