PC Depot

General Journal for the Month September

Entry No. Account Dr Cr

1 Cash 165,000.00
Bank Loan Payable (15%) 100,000.00
Proprietor's Capital 65,000.00
2 Rent Expense September 1,485.00
Cash 1,485.00
3 Inventory Merchandise Delivery 137,500.00
Accounts Payable 137,500.00
4 Furniture and Fixtures (10 year life) 15,500.00
Cash 15,500.00
5 Advertising Expense 1,320.00
Cash 1,320.00
6 Wages Expense 935.00
Cash 935.00
7 Office Supplies 1,100.00
Cash 1,100.00
8 Utilities Expense 275.00
Cash 275.00
9 Cash (Cash Sales For September) 38,000.00
Sales Revenue - September 38,000.00
10 Accounts Receivable (Credit Sales for September) 14,850.00
Sales Revenue - September 14,850.00
11 Cash (Cash Received from Credit Customers) 3,614.00
Accounts Receivable 3,614.00
12 Accounts Payable (Bill paid to Merchandise Suppliers) 96,195.00
Cash 96,195.00
13 Inventory New Merchandise Received on Credit) 49,940.00
Accounts Payable 49,940.00
14 Cost of Goods Sold (Ms. Thompson Ascertains Cost of Goods Sold 38,140.00
Inventory 38,140.00
15 Wages Expense Wages paid to assistant 688.00
Cash 688.00
16 Wages Expense Wages earned but not paid in September 440.00
Wages payable 440.00
17 Advance Rent Rent for October 1,485.00
Cash 1,485.00
18 Prepaid Expense Insurance - for 1 year 2,310.00
Cash 2,310.00
19 Utilities Expense Bills received but unpaid from Electric Co. 226.00
Accounts Payable 226.00
20 Furniture and Fixtures (10 year life) - Purchase Sign 660 cash/1100 credit 1,760.00
Cash 660.00
Account Payable 1,100.00

Total 570,763.00 570,763.00

Additional Entries
21 Interest Expense 1,250.00
Interest Payable 1,250.00
22 Depreciation Expense 143.83
Accumulated Depreciation 143.83

Total 572,156.83 572,156.83

PC Depot

Balance Sheet for the Month of September Beginning Ending

Assets
Current Assets
Cash 165,000.00 84,661.00
Inventory 149,300.00
Accounts Receivable 11,236.00
Less: Allowances for Bad debts (561.80)
Pre-paid Expense
Insurance 2,310.00
Less: Applied Cost (192.50)
Others: Advance Rent 1,485.00

Fixed Assets
Furniture and fixtures 17,260.00
Less: Accumulated Depreciation (143.83)

Total Assests 165,000.00 265,353.87

Liabilities and Propreitary Capital

Current Liabialities
Accounts Payable Err:522
Wages Payable 440.00
Utilities Payable 226.00
Taxes Payable 2,132.50
Interest Due 1,250.00
Long Term Liabilities
Notes Payable 100,000.00 100,000.00

Propreitary Capital 65,000.00 65,000.00

Retained Earnings 3,960.36

Total Liabilities and Propreitary Capital 165,000.00 Err:522

Err:522
PC Depot

Income Statement for the Month of September

Income / Revenue

Sales Revenue 52,850.00

Less: Cost of Goods Sold 38,140.00
Gross Margin 14,710.00

Less: Expenses
Utilities 501.00
Rent 1,485.00
Advertising 1,320.00
Office Supplies 1,100.00 Assumed to be consumed totally
Wages 2,063.00
Depreciation Expense 143.83 Depreciation Period of 10 years
Applied Costs
Insurance 192.50 1/12 of Premium Paid
Interest Payments 1,250.00 Interest Accrued for the period
Allowances for Bad Debts 561.80 5% of Accounts Receivable
Total Expenses 8,617.13

Net Profit before Taxes 6,092.87

Taxes 2,132.50 Assumed Taxes are at 35%

Net Profit 3,960.36