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Cost of Merchandise Sold $604,783

1. The document contains journal entries for Save-Mart for the month of February. It records expenses for cost of merchandise, equipment purchase, supplies inventory, expired insurance, note payable interest, and salaries payable. 2. The journal entries are used to record transactions and close revenue and expense accounts to the income statement. 3. An adjusted bank balance is shown, with a difference due to a bank service charge expense.

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Fitz Gerald Balba
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455 views

Cost of Merchandise Sold $604,783

1. The document contains journal entries for Save-Mart for the month of February. It records expenses for cost of merchandise, equipment purchase, supplies inventory, expired insurance, note payable interest, and salaries payable. 2. The journal entries are used to record transactions and close revenue and expense accounts to the income statement. 3. An adjusted bank balance is shown, with a difference due to a bank service charge expense.

Uploaded by

Fitz Gerald Balba
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

Cost of merchandise sold $604,783

Cash (1) 604,783

Sales Revenue (1) 604,783

2. Bumile ng equipment

Cash (1) 604,783 (2) 11,420 Equipment at Cost (2) 11,420

3. Supplies inventory, February 28, $3, 877

Inventory (3) 21,357

Accounts Payable (3)21,357

4. Expired insurance 7,125

Cash (1) 604,783 (2) 11,420 (4) 5,305 Insurance Expense (4) 5,305

5. The note payable interest rate of 9 percent, payable monthly. 1 year

Cash (1) 604,783 (2)11,420 (4) 5,305 (5)88,500

Notes Payable (5) 88,500

6. salaries payable $2,340


Cash (1)604,783 (2) 11,420 (4) 5,305 (5) 88,500 (6) 2,340 Wages Expense (6) 2,340

adjusted balance ng bank of $88,110. The difference is bank service charge


Cash (1) 604,783 (2) 11,420 (4) 5,305 (5) 88,500 (6) 2,340 (7)390 Bank service charge expense (7) 390

Journal Entries Save-Mart

Entry Number (1)

Account Cash Sales Revenue Equipment Cash Inventory Accounts Payable Insurance expense Cash Note payable Cash Wages expense

Dr. 604,783

Cr.

604,78 11,420 11,420 21,357 21,357 5,305 5,305 88,500 88,500 2,340

(2)

(3)

(4)

(5)

(6)

Cash (7) Bank service charge Cash Closing Journal Entries: Account Titles Sales Revenue Income Statement To close revenue accounts Income Summary Equipment expense Utilities expense Insurance expense Interest expense Wages expense Bank service charge To close expense accounts 129,312 11,420 21,357 5,305 88,500 2,340 390 604,783 604,783 390

2,340

390

(1)

(2)

Save-Mart Balance Sheet As of February 28 Assets Current Assets Cash A/R Mdse.Invty. Supplies Invty. Prepaid Insce. Selling expense Sales salaries Sales discount Interest expense 88,860 127,430 903,130 17,480 12,430 10,880 47,140 3,340 7,100 1,217,790 Non-Current Liab. Common Stock Retained Earnings Other non-current TOTAL NON CURRENT LIAB 100,000 33,500 988,700 1,122,200 Liabilities & Owners Equity Current Liabilities: Notes payable Accounts payable TOTAL CURRENT LIAB. 88,500 88,970 177,470

TOTAL CURRENT ASSETS Non-Current: Store Equip Acc. Dep. Other non-current assets Misc. Gen, expense Social security tax Expense TOTAL ASSETS 18,930 3,400 70,970 (11,420)

59,550

22,330 1,299,670 TOTAL LIABILITIES 1,299,670

Save-Mart Income Statement As of February 28

Sales Cost of Sales Gross Margin Expenses: Selling expense Sales salaries Misc.Gen. expense Interest expense Income before tax Tax expense NET INCOME 10,880 47,140 18,930 7,100

988,700 (3,340) 985,360

84,050 901,310 3,400 897,910

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