Date

Explanation
1-May Cash
Brad Nailem, Capital

Journal (J1)
Ref.
Debit
Credit
101 $ 10,000.00
301
$ 10,000.00

1-May Inventory
A/cs Pay.

120 $ 12,000.00
201
$ 12,000.00

2-May A/cs Rec.

Sales
Cost of Sales
Inventory

112 $ 10,000.00
401
$ 10,000.00
505 $ 6,200.00
120
$ 6,200.00

5-May Accounts Payable

Inventory

201 $ 1,200.00
120
$ 1,200.00

9-May Cash
Sales Discounts
A/cs Rec.

632 $ 9,900.00
112 $
100.00
112
$ 10,000.00

10-May Accounts Payable

Discount Received
Cash

201 $ 10,800.00
508
$
216.00
101
$ 10,584.00

11-May Supplies
Cash

126 $ 1,800.00
101
$ 1,800.00

12-May Inventory
Cash

120 $ 5,400.00
101
$ 5,400.00

15-May Cash

101 $
120

Inventory

460.00
$

460.00

17-May Inventory
A/cs Pay.

120 $ 3,800.00
201
$ 3,800.00

19-May Freight in
Cash

510 $
101

24-May Cash
Sales

101 $ 12,400.00
401
$ 12,400.00

Cost of Sales
Inventory

505 $ 9,200.00
120
$ 9,200.00

500.00
$

500.00

25-May Inventory
A/cs Pay.

120 $ 2,000.00
201
$ 2,000.00

27-May A/cs Pay.

Cash
Discount Received

505 $ 3,800.00
101
$ 3,724.00
508
$
76.00

29-May Sales returns and allowances

Cash

412 $
101

200.00

Inventory write down

Cost of Sales

515 $
505

40.00

31-May A/cs Rec.

Sales
Cost of Sales
Inventory

200.00

40.00

112 $ 3,200.00
401
$ 3,200.00
505 $ 2,240.00
120
$ 2,240.00

Ledger
Cash
Date
Explanation
1-Mar Balance
9-May
9-May
10-May
11-May
12-May
15-May
19-May
24-May
27-May
29-May

Date
1-Mar

Date
1-May
2-May
9-May
12-May
15-May
17-May
24-May
25-May
31-May

Capital
Explanation

Inventory
Explanation

A/cs Payable
Date
Explanation
1-May
5-May
10-May
17-May
25-May
27-May

Date
2-May
9-May

A/cs Receivable
Explanation

Ref.
J1
J1
J1
J1
J1
J1
J1

Debit
Credit
$ 10,000
$ 9,900

J1
J1

$ 12,400

$ 10,584
$ 1,800
$ 5,400
$

460
$

Ref.
J1

Ref.
J1
J1
J1
J1
J1
J1
J1
J1
J1

Ref.
J1
J1
J1
J1

Ref.
J1
J1

500

$ 3,724
$
200

No. 101
Balance
$ 10,000
$ 19,900
$ 19,900
$ 9,316
$ 7,516
$ 2,116
$ 2,576
$ 2,076
$ 14,476
$ 10,752
$ 10,552

Debit
Credit
$ 10,000

No. 301
Balance
$ 10,000

Debit
Credit
$ 12,000
$ 1,200
$ 6,200
$ 5,400
$
460
$ 3,800
$ 9,200
$ 2,000
$ 2,240

No. 120
Balance
$ 12,000
$ 10,800
$ 4,600
$ 10,000
$ 9,540
$ 13,340
$ 4,140
$ 6,140
$ 3,900

No. 201
Credit
Balance
$ 12,000 $ 12,000
$ 1,200
$ 10,800
$ 10,800
$
$ 3,800 $ 3,800
$ 2,000 $ 5,800
$ 3,800
$ 2,000
Debit

No. 112
Debit
Credit
Balance
$ 10,000
$ 10,000
$ 10,000 $
-

31-May

Date
2-May
24-May
31-May

$ 3,200
Sales
Explanation

$ 3,200
$
401
Credit
Balance
$ 10,000 $ 10,000
$ 12,400 $ 22,400
$ 3,200 $ 25,600

Ref.
J1

Debit

Ref.
J1

Debit
Credit
$ 6,200
$ 9,200
$
40
$ 2,240

No. 140
Balance
$ 6,200
$ 15,400
$ 15,360
$ 17,600

Ref.
J1

Debit
Credit
$
100

No. 415
Balance
$
100

Ref.
J1

Debit

Supplies
Date
Explanation
11-May

Ref.
J1

Debit
Credit
$ 1,800

No. 126
Balance
$ 1,800

Freight in
Date
Explanation
19-May

Ref.
J1

Debit
Credit
$
500

No. 510
Balance
$
500

Sales returns and allowances

Date
Explanation
29-May

Ref.
J1

Debit

Inventory Write down

Date
Explanation
29-May

Ref.
J1

Debit
Credit
$
40

Cost of Sales
Date
Explanation
2-May
24-May
29-May
31-May
Sales Discounts
Date
Explanation
9-May
Discount Received
Date
Explanation
10-May
27-May

No. 508
Credit
Balance
$
216 $
216
$
76 $
292

No. 412
Credit
Balance
$
200 $
200
No. 515
Balance
$
40

Tri State Pro Shop

Income Statement (gross profit)
for the month ended 30 April 2010
Sales
plus discount received
less sales returns
Net Sales
less Cost of Goods Sold
less sales discounts
less inventory write down
less freight in
Gross profit

$ 25,600.00
$
292.00
$
200.00
$ 25,692.00
$
$
$
$

17,600
100
40
500.00 $ 18,240.00
$ 7,452.00