Leading Technology Company Journal entries in March 2016

Date b.b. Debit Credit

March 1st 2016 Cash (Efectivo) $4,000
Banks (bancos) 100,000
Merchandise Inventory (almacén /mercancías) 370,000
Computer Equipment (equipo cómputo) 80,000
Accounts payable (Proveedores - CxP) $260,000
Sundry Creditors (acreedores diversos) 80,000
Paid-in Capital (pagos a capital) 214,000
Recording of beginning balances

1
March 3rd Accounts receivable (Clientes / Cuentas x Cobrar) 122,100
Sales revenue (ventas) 122,100
Sale of merchandise on credit

1a
March 3rd Cost of goods sold (costo de ventas) 40,000
Merchandise inventory (almacen / mercancías) 40,000
Sale of merchandise

2
March 4th Furniture (muebles / mobiliario) 2,000
Sundry Creditors (acreedores diversos) 2,000
Purchase of furniture on credit

3
March 5th Merchandise inventory (almacén / mercancías) 15,000
Accounts payable (Proveedores / Cuentas x pag) 15,000
Purchase of merchandise on credit

4
March 6th Equipment (equipo) 20,000
Banks (Bancos) 20,000
Purchase of equipment, paid with a
check

5
March 7th Accounts payable (Proveedores - CxP) 3,000
Merchandise inventory (almacén /mercancías) 3,000
Return of merchandise to the supplier

6
March 10th Cash (efectivo) 300,000
Sales revenue (ventas) 300,000
Sale of merchandise in cash

6a
March 10th Cost of goods sold (costo de ventas) 105,000
Merchandise inventory (almacén / mercancías) 105,000
Sale of merchandise

7
March 11th Sales revenue (ventas) 10,000
 Banks (Bancos) 10,000
Return of merchandise from a sale

7a
March 11th Merchandise inventory (almacén / mercancías) 3,500
Cost of goods sold (costo de ventas) 3,500
Return of merchandise from a sale

8
March 12th Selling expenses (gastos de venta) 15,000
Banks (bancos) 15,000
Shipping costs paid with a check

9
March 15th Notes receivable (Doc x cobrar) 100,000
Sales revenue (Ventas) 100,000
Sale of merchandise, guaranteed with
a note

9a
March 15th Cost of goods sold (costo de ventas) 30,500
Merchandise inventory (almacén / mercancías) 30,500
Sale of merchandise

10
March 18th Notes receivable (doc x cobrar) 110,187
Sales revenue (ventas) 100,170
 Interest income (intereses cobrados) 10,017
Sale of merchandise guaranteed with
a note, including a 10% interest
10a
March 18th Cost of goods sold (costo de ventas) 30,380
Merchandise inventory (almacén / mercancías) 30,380
Sale of merchandise

11
March 20th Administrative expenses (gastos administración) 180,000
Selling expenses (gastos de venta) 40,000
Salaries payable (salarios x pagar) 220,000
Salaries that must be paid

12
March 22nd Administrative expenses (gastos de administración) 20,000
Expenses payable (gastos por pagar) 20,000
Expenses that must be paid

13
March 25th Banks (bancos) 295,000
Cash (efectivo) 295,000
Deposit in the company´s bank account

14
March 27th Cash (efectivo) 18,000
Sales revenue (ventas) 2,000
Sales revenue (ventas) 20,000
Sale of merchandise including a 10%
 discount
14a
March 27th Cost of goods sold (costo de ventas) 5,000
Merchandise inventory (almacén / mercancías) 5,000
Sale of merchandise

15
March 28th Merchandise inventory (almacén / mercancías) 208,000
Interest expense (intereses pagados) 10,400
Banks (Bancos) 104,000
Notes payable (Doc x pagar) 114,400
Purchase of merchandise, 50% guaranteed
with a note, including a 10% interest
16
March 28th Merchandise inventory (almacén / mercancías) 50,000
Notes payable (Doc x pagar) 50,000
Purchase of merchandise, guaranteed with
a note

17
March 29th Merchandise inventory (almacén / mercancías) 30,000
Banks (Bancos) 30,000
Purchase of merchandise, paid with a check

18
March 30th Computer equipment (equipo de cómputo) 20,000
Banks (Bancos) 20,000
Purchase of a computer, paid with a check
 19
March 31st Administrative expenses (Gastos administración) 1,500
Accumulated depreciation (depreciación acumulada) 1,500
Depreciation of fixed assets in the month
Equal amounts $2,340,567 $2,340,567
 T Accounts

Cash Banks
b.b.) 4,000 295,000 (13 b.b.) 100,000
6) 300,000 13) 295,000
14) 18,000

322,000 295,000 395,000

e.b.) 27,000 e.b.) 196,000

Accounts payable Paid-in Capital

5) 3,000 260,000 (b.b.
15,000 (3

3,000 275,000
272,000 (e.b.

Computer Equipment Accounts Receivable

b.b.) 80,000 1) 122,100
18) 20,000

e.b.) 100,000 e.b.) 122,100

Selling expenses Administrative expenses

8) 15,000 11) 180,000
11) 40,000 12) 20,000
19) 1,500
 Interest income Interest expense
10,017 (10 15) 10,400

Accumulated depreciation
1,500 (19

1,500 (e.b.
 Banks Merchandise Inventory
20,000 (4 b.b.) 370,000 40,000 (1a 4)
10,000 (7 3) 15,000 3,000 (5
15,000 (8 7a) 3,500 105,000 (6a
104,000 (15 15) 208,000 30,500 (9a
30,000 (17 16) 50,000 30,380 (10a
20,000 (18 17) 30,000 5,000 (14a

199,000 676,500 213,880 e.b.)

e.b.) 462,620

Paid-in Capital Sales Revenue

214,000 (b.b. 7) 10,000 122,100 (1 1a)
14) 2,000 300,000 (6 6a)
100,000 (9 9a)
100,170 (10 10a)
20,000 (14 14a)

214,000 (e.b.

ccounts Receivable Furniture

2) 2,000

e.b.) 2,000

ministrative expenses Expenses payable

20,000 (12
 20,000 (e.b.

Interest expense Notes payable

114,400 (15 9)
50,000 (16 10)

164,400 (e.b. e.b.)

 Equipment
20,000

20,000

Cost of goods sold

40,000 3,500 (7a
105,000
30,500
30,380
5,000

Sundry Creditors
80,000 (b.b.
2,000 (2

82,000 (e.b.

Salaries payable
220,000 (11
 220,000 (e.b.

Notes receivable
100,000
110,187

210,187
 Leading Technology Company
Trial balance
For the month of March 2016
Account Activity Ending balances
Account Debit Credit Debit Credit
Cash $322,000 $295,000 $27,000
Banks 395,000 199,000 196,000
Accounts Receivable 122,100 122,100
Merchandise Inventory 676,500 213,880 462,620
Notes Receivable 210,187 210,187
Equipment 20,000 20,000
Computer Equipment 100,000 100,000
Furniture 2,000 2,000
Accounts Payable 3,000 275,000 $272,000
Notes Payable 164,400 164,400
Salaries Payable 220,000 220,000
Sundry Creditors 82,000 82,000
Expenses Payable 20,000 20,000
Paid-in Capital 214,000 214,000
Cost of goods sold 210,880 3,500 207,380
Administrative expenses 201,500 201,500
Selling expenses 55,000 55,000
Interest Expense 10,400 10,400
Sales Revenue 12,000 642,270 630,270
Interest Income 10,017 10,017
Accumulated depreciation 1,500 1,500
Equal amounts $2,340,567 $2,340,567 $1,614,187 $1,614,187