Date Description PR Debit Credit

2020 Cash/ 101 39,000

Apr-01 Lopez, Capital/ 301 39,000
To record the initial investment

Apr-02 Equipment/ 150 10,000

Cash/ 101 10,000
To record purchase equipment

2 Merchandise Inventory/ 115 15,900

Accounts Payable/ 201 15,900
To record purchases on account

3 Supplies/ 700
Cash/ 700
To record purchase supplies

4 Accounts Receivable/ 105 15,200

Sales/ 401 15,200
To record sold goods on account

Cost of Goods Sold/ 501 12,200

Merchandise Inventory/ 1 115 12,200
To record cost of sales

5 Freight out/ 200

Cash/ 200
To record freight on sales
6 Accounts Payable/ 300
Merchandise Inventory/ 300
To record returned goods

11 Accounts Payable/ 15600

Merchandise Inventory/ 312
Cash/ 15,288
To record payment on account

13 Cash/ 14,896
Sales Discount/ 304
Accounts Receivable/ 15200
To record collection from customers

14 Merchandise Inventory/ 14,400

Cash/ 14,400
To record purchases in cash

15 Salaries 1,500
Cash/ 1,500
 to record payment of salary

16 Cash/ 12,000
Notes Payable/ 12,000
To record borrowed money

17 Cash/ 500
Merchandise Inventory/ 500
To record refund from supplier

18 Merchandise Inventory/ 14,200

Accounts Payable/ 14,200
To record purchases on account

20 Merchandise Inventory/ 700

Cash/ 700
To record transportation cost

23 Cash/ 16,400
Sales/ 16,400
To record sold goods in cash

Cost of goods sold/ 10,500

Merchandise Inventory/ 2 10,500
To record cost of sales

26 Merchandise Inventory/ 12,300

Cash/ 12,300
To record purchases in cash

27 Accounts Payable/ 9,000

Cash/ 9,000
To record partial payment

28 Lopez, Drawings/ 2,008

Cash/ 2,008
To record withdrawal of owner

29 Sales Returns and Allowances/ 900

Cash/ 900
To record refund to customer

30 Accounts Receivable/ 13,700

Sales/ 13,700
To record sold goods on account

Cost of goods sold/ 11,000

Merchandise Inventory/ 3 11,000
 To record cost of sales

30 Advertising/ 1,000
Utilities 400
Rent 3,500
Salary 1,500
Cash/ 249,808 6,400
To record payment in advertising 249808
utilities, rent and salary
 ACCOUNT TITLE: CASH DR CR DR CR
Apr-01 Initial Investment 39,000 39,000
2 Purchase Equipment 10,000 29,000
3 Purchase Supplies 700 28,300
5 Freight on sales 200 28,100
11 Payment on account 15288 12,812
13 Collection from customers 14,896 27,708
14 Purchases in cash 14,400 13,308
15 Payment of salary 1500 11,808
16 Borrowed money 12,000 23,808
17 Refund from supplier 500 24,308
20 Transportation cost 700 23,608
23 Sold goods 16,400 40,008
26 Purchases in cash 12,300 27,708
27 Partial payment 9000 18,708
28 Withdrawal of owner 2,008 16,700
29 Refund to customer 900 15,800
30 Payment in advertising, utilities 6,400 9,400
rent and salary

ACCOUNT TITLE: ACCS. REC

Apr-04 Sold goods on account 15,200 15,200
13 Collection from customer 15,200 0
30 Sold goods on account 13,700 13,700

ACCOUNT TITLE: MERCHANDISE INVENTO

2 Purchases on account 15,900 15,900
4 Cost of sales 12,200 3700
6 Returned goods 300 3,400
11 Payment on account 312 3,088
14 Purchases in cash 14,400 17,488
17 Refund from supplier 500 16,988
18 Purchases on account 14,200 31,188
20 Transportation cost 700 31,888
23 Cost of sales 10,500 21,388
26 Purchases in cash 12,300 33,688
30 Cost of sales 11,000 22,688

ACCOUNT TITLE: SUPPLIES

3 Purchase supplies 700 700

ACCOUNT TITLE: EQUIP

2 Purchase of equioment 10,000 10,000

ACCOUNT TITLE: ACCS. PAYABLE

2 Purchases on account 15,900 15,900
6 Returned goods 300 15,600
11 Payment on account 15,600 0
18 Purchases on account 14,200 14,200
27 Prtial payment 9000 5,200

ACCOUNT TITLE: NOTES PAYABLE

16 Borrowed money 12,000 12,000

ACCOUNT TITLE: CAPITAL

1 Initial Investment 39,000 39,000

DRAWINGS
28 Withdrawal of owner 2,008 2,008

SALES
4 Sold goods on account 15,200 15,200
23 Sold goods in cash 16,400 31,600
30 Sold goods on account 13,700 45,300

SALES RETURNS AND ALLOWANCES

29 Refund to customer 900 900

SALES DISCOUNTS
13 Collection from customer 304 304

COST OF GOODS SOLD

4 Cost of sales 12,200 12,200
23 Cost of sales 10,500 22,700
30 Cost of sales 11,000 33,700

ADVERTISING Expense
30 Payment in advertising expense 1,000 1000

UTILITIES
30 Payment in utilities 400 400

RENT EXPENSE
30 Payment in rent expense 3,500 3,500

SALARIES
15 Payment in salary 1,500 1,500
30 Payment in salary 1,500 3,000

FREIGHT OUT
5 Freight on sales 200 200