MORGAN COMPANY

Journal Entries
January 31, 2020

DATE DESCRITION DEBIT CREDIT

Jan 1 Interest Payable $ 250
2020 Cash $ 250
2 Inventory 261.100
Accounts Payable 261.100
3 Cash 440.000
Sales Revenue 411.400
Sales Tax Payable 28.600
Cost of Goods Sold 265.000
Inventory 265.000
4 Accounts Payable 230.000
Cash 230.000
5 Sales Tax Payable 17.000
Cash 17.000
6 Operating Expense 30.000
Cash 30.000
7 Salaries & Wages Expense 60.000
FICA Payable 4.590
FICA Payable:
Federal Income Tax With-held 8.900 7,65%×$60.000=$4.590
Salaries & Wages Payable 46.510
TOTAL $ 1.303.350 $ 1.303.350
 MORGAN COMPANY
General Ledger
January 31, 2020

Cash Inventory Prepaid Insurance Equipment

01-01 $ 30.000 01-01 $ 250 01-01 $ 30.750 03-01 $ 265.000 01-01 $ 6.000 01-01 $ 38.000
03-01 440.000 04-01 230.000 02-01 261.100
05-01 17.000
06-01 30.000
$ 192.750 $ 26.850 $ 6.000 $ 38.000

Accounts Payable Interest Payable Notes Payable FICA Payable

04-01 $ 230.000 01-01 $ 13.750 01-01 $ 250 01-01 $ 250 01-01 $ 50.000 06-01 $ 4.590
02-01 261.100

$ 44.850 $ - $ 50.000 $ 4.590

Federal Income Tax With-held Salaries & Wages Payable Sales Tax Payable Owner's Equity
06-01 $ 8.900 06-01 $ 46.510 05-01 $ 17.000 03-01 $ 28.600 01-01 $ 40.750

$ 8.900 $ 46.510 $ 11.600 $ 40.750

Sales Revenue Cost of Goods Sold Operating Expense Salaries & Wages Expense
03-01 $ 411.400 03-01 $ 265.000 06-01 $ 30.000 06-01 $ 60.000

$ 411.400 $ 265.000 $ 30.000 $ 60.000

 MORGAN COMPANY MORGAN COMPANY
Trial Balance Adjusting Entries
January 31, 2020 January 31, 2020

ACCOUNTS NAME DEBIT CREDIT DATE DESCRIPTION DEBIT CREDIT

Cash $ 192.750 - Jan 31 Interest Expense $ 250
Inventory 26.850 - 2020 Interest Payable $ 250
Prepaid Insurance 6.000 - 31 Insurance Expense 500
Equipment 38.000 - Prepaid Insurance 500
Accounts Payable - $ 44.850 31 Depreciation Expense 7.200
Interest Payable - - Accumulated Depreciation - Equipment 7.200
Notes Payable - 50.000 31 Payroll Tax Expense 8.310
FICA Payable - 4.590 FICA Payable 4.590
Federal Income Tax With-held - 8.900 State Unemployment Tax Payable 3.240
Salaries & Wages Payable - 46.510 Federal Unemployment Tax Payable 480
Sales Tax Payable - 11.600 TOTAL $ 16.260 $ 16.260
Owner's Equity - 40.750
Prepaid Insurance: State Unemployment Tax:
Sales Revenue - 411.400 1
× $6.000=$500 5,4%×$60.000=$3.240
Cost of Goods Sold 265.000 - 12
Operating Expense 30.000 - Depreciation Equipment: Federal Unemployment Tax:
$38.000−$2.000
Salaries & Wages Expense 60.000 - =$7.200 0,8%×$60.000=$480
5
TOTAL $ 618.600 $ 618.600
 MORGAN COMPANY
Worksheet
January 31, 2020

TRIAL BALANCE ADJUSTING ENTRIES ADJUSTED TB INCOME STATEMENT BALANCE SHEET

ACCOUNTS NAME
D C D C D C D C D C
Cash $ 192.750 $ 192.750 $ 192.750
Inventory 26.850 26.850 26.850
Prepaid Insurance 6.000 $ 500 5.500 5.500
Equipment 38.000 38.000 38.000
Accounts Payable $ 44.850 $ 44.850 $ 44.850
Interest Payable - 250 250 250
Notes Payable 50.000 50.000 50.000
FICA Payable 4.590 4.590 9.180 9.180
Federal Income Tax With-held 8.900 8.900 8.900
Salaries & Wages Payable 46.510 46.510 46.510
Sales Tax Payable 11.600 11.600 11.600
Owner's Equity 40.750 40.750 40.750
Sales Revenue 411.400 411.400 $ 411.400
Cost of Goods Sold 265.000 265.000 $ 265.000
Operating Expense 30.000 30.000 30.000
Salaries & Wages Expense 60.000 60.000 60.000
TOTAL $ 618.600 $ 618.600
Accumulated Depreciation - Equipment 7.200 7.200 7.200
State Unemployment Tax Payable 3.240 3.240 3.240
Federal Unemployment Tax Payable 480 480 480
Interest Expense $ 250 250 250
Insurance Expense 500 500 500
Depreciation Expense 7.200 7.200 7.200
Payroll Tax Expense 8.310 8.310 8.310
TOTAL $ 16.260 $ 16.260 $ 634.360 $ 634.360 $ 371.260 $ 411.400 $ 263.100 $ 222.960
NET PROFIT $ 40.140 $ 40.140
TOTAL $ 411.400 $ 411.400 $ 263.100 $ 263.100
 MORGAN COMPANY MORGAN COMPANY
Income Statement M. Firman Ardiyansyah Owner Equity Statement
January 31, 2020 20223971/1EB09 January 31, 2020

REVENUE: Owner's Equity Beginning (1 Jan) $ 40.750

Sales Revenue $ 411.400 Net Profit 40.140
COST OF GOODS SOLD:
Cost of Goods Sold - 265.000 Owner's Equity Ending (31 Jan) $ 80.890
GROSS PROFIT $ 146.400
EXPENSES:
Operating Expense 30.000
Salaries & Wages Expense 60.000
Interest Expense 250
Insurance Expense 500
Depreciation Expense 7.200
Payroll Tax Expense 8.310
TOTAL EXPENSES - 106.260
NET PROFIT $ 40.140
 MORGAN COMPANY
M. Firman Ardiyansyah
Balance Sheet
20223971/1EB09
January 31, 2020

ASSET EQUITY & LIABILITY

Property, Plant, Equipment: Equity:
Equipment $ 38.000 Owner's Equity $ 80.890
Accumulated Depreciation - Equipment - 7.200
Total Property, Plant, Euipment $ 30.800 Total Equity $ 80.890

Current Assets: Liability:

Prepaid Insurance 5.500 Federal Unemployment Tax Payable 480
Inventory 26.850 State Unemployment Tax Payable 3.240
Cash 192.750 Federal Income Tax With-held 8.900
Total Current Assets 225.100 FICA Payable 9.180
Sales Tax Payable 11.600
Salaries & Wages Payable 46.510
Notes Payable 50.000
Interest Payable 250
Accounts Payable 44.850
Total Liabilities 175.010
TOTAL ASSETS $ 255.900 TOTAL EQUITY & LABILITY $ 255.900