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JOURNAL ENTRIES - 2020

DATE ACCOUNT TITLES REF. DEBIT
JE 1
JAN. 2 CASH 111 500,000
LAND 121 200,000
BUILDING 122 400,000
SHARE CAPITAL 311
TO RECORD INITIAL INVESTMENTS.
JE 2
JAN. 2 ORGANIZATIONAL EXPENSES 611 31,000
CASH 111
TO RECORD INCORPORATION COSTS.

JAN. 3 NO JOURNAL ENTRY.

NON-ACCOUNTING TRANS.
JE 3
JAN. 4 FURNITURE AND EQUIPMENT 123 64,000
SUPPLIES ON HAND 114 12,000
CASH 111
BOUGHT FURN & EQ, & OFFICE SUPPLIES.

JAN. 15 NO JOURNAL ENTRY.

NON-ACCOUNTING TRANS.
JE 4
FEB. 18 PURCHASES 511 360,000
CASH 111
TO RECORD PURCHASED ON C.O.D. BASIS.
JE 5
MAR. 23 CASH 111 140,000
SALES 411
TO RECORD C.O.D. SALES
JE 6
APR. 30 ACCOUNTS RECEIVABLE 112 230,000
SALES 411
TO RECORD CREDIT SALES
JE 7
MAY 31 SALARIES EXPENSE 612 45,000
CASH 111
TO RECORD PAYROLL FOR THE MO.
JE 8
JUN. 16 PURCHASES 511 400,000
ACCOUNTS PAYABLE 211
 TO RECORD PURCHASES ON CREDIT.
JE 9
AUG. 9 CASH 111 250,000
ACCOUNTS RECEIVABLE 112 250,000
SALES 411
TERM: 50% DOWN, BAL. IN 6 MOS.
JE 10
OCT. 31 ADVERTISING EXPENSE 614 7,000
GAS AND OIL EXPENSE 615 9,000
REPRESENTATION EXPENSE 616 4,000
UTILITIES EXPENSE 617 12,000
CASH 111
TO RECORD PAID VARIOUS EXPENSES.

NOV. 30 NO JOURNAL ENTRY.

NON-ACCOUNTING TRANS.
- TOTALS - 2,914,000

ADJUSTING JOURNAL ENTRIES

DATE ACCOUNT TITLES REF. DEBIT
AJE 1
DEC. 31 MERCHANDISE INVENTORY 113 125,000
INCOME AND EXPENSE SUMMARY 313
TO SET UP ENDING INVENTORY.
AJE 2
DEC. 31 SUPPLIES EXPENSE 613 8,000
SUPPLIES ON HAND 114
TO RECORD SUPPLIES USED.
AJE 3
DEC. 31 UTILITIES EXPENSE 617 13,000
ACCRUED UTILITIES PAYABLE 212
UNPAID ELECTRIC BILL FOR THE MONTH.
AJE 4
DEC. 31 DEPRECIATION EXPENSE 618 26,400
ACCUMULATED DEPRECIATION - BUILDING 122-1
ACCUMULATED DEPRECIATION - FURN & EQUIP. 123-1
TO PROVIDE FOR ANNUAL DEPRECIATION.
- TOTALS - 172,400
CREDIT

1,100,000

31,000

76,000

360,000

140,000

230,000

45,000

400,000
 500,000

32,000

2,914,000

CREDIT

125,000

8,000

13,000

20,000
6,400

172,400
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