Page 199.

Exercise H-5.5

DATE ACCOUNT NAME DEBIT CREDIT

Opening entries for Land 10.000
permanent accounts Building 20.000
Furniture 10.000
Stock 15.000
Cash 15.000
Capital 40.000
Reserves 10.000
Accounts payable 15.000
Short term creditors 5.000
1 Stock 4000
Bank 4000
2 Account receivable 15000
Sales revenue 15000
3 Wages expense 20000
Wages payable 20000
4 Short term creditors 5000
Bank 5000
5 Bank 5000
Sales revenue 5000
6 Bank 1000
Interest revenue 1000
7. Cost of good sold 15.000
15.000 from the Stock 15.000
previous period +
4.000 purchased now
– 4.000€ remaining=
15.000
TOTAL 135.000 135.000
Closing entries for Sales revenue 20.000
temporary accounts Interest revenue 1.000
Net income 14.000
Wages expense 20.000
Cost of good sold 15.000
Closing entries for Capital 40.000
permanent accounts Reserves 10.000
Account payable 15.000
Wages payable 20.000
Land 10.000
Building 20.000
Furniture 10.000
Stock 4.000
Cash 12.000
Account receivable 15.000
Net income 14.000
TOTAL 255.000 255.000
 ACCOUNT SUMS BALANCE
Debit Credit Debit Credit
Land 10.000 0 10.000
Building 20.000 0 20.000
Furniture 10.000 0 10.000
Stock 19.000 15.000 4.000
Cash 21.000 9.000 12.000
Capital 0 40.000 40.000
Reserves 0 10.000 10.000
Account payable 0 15.000 15.000
Short-term 5.000 5.000 0 0
creditors
Account 15.000 0 15.000
receivable
Sales revenue 0 20.000 20.000
Wages expense 20.000 0 20.000
Wages payable 0 20.000 20.000
Interest revenue 0 1.000 1.000
Cost of good 15.000 0 15.000 0
sold
Total 0.000 0.000 106.000 106.000

Income Statement

Sales revenue 20.000

Cost of good sold (15.000)
I. Gross margin 5.000
Operating expenses (20.000)
 Wages expense (20.000)
II. EBITDA (15.000)
Depreciation (0)
III. Operating result (15.000)
Financial revenue 1.000
Financial Expense (0)
IV. Financial result 1.000
V. Net income before tax (14.000)
Income tax (0)
VI. Net income (14.000)
Balance sheet

ASSETS EQUITY AND LIABILITIES

Non current assets 40.000 Equity 36.000
 Land 10.000  Capital 40.000
 Building 20.000  Reserves 10.000
 Furniture 10.000  Net income (14.000)
Current assets 31.000 Non current 0
 Stock 4.000 liabilities
 Cash 12.000 Current liabilities 35.000
 Account 15.000  Wages 20.000
receivable payable
 Accounts 15.000
payable
Total Assets 71.000 Total equity and 71.000
liabilities

Journal Book of 2013

DATE ACCOUNT NAME DEBIT CREDIT

Opening entries for Land 10.000
permanent accounts Building 20.000
Furniture 10.000
Stock 4.000
Cash 12.000
Account receivable 15.000
Net income 14.000
Capital 40.000
Reserves 10.000
Wages payable 20.000
Accounts payable 15.000