This problem is for the month of February for OverPriced Jeans (OPJ). You will be using...

  

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This problem is for the month of February for OverPriced Jeans (OPJ). You will be using the new Revenue and Expense accounts that you learned about in this chapter to record OPJ's February transactions. Use the foms in the Excel file Problem 4-1 Forms.xls to complete this problem. Notice that the beginning balances have been put into the General Ledger accounts. These beginning account balances were the January ending account balances from Problem 2-1. Requirement 1 (If you previously completed Problem 3-1, these are the same February transactions utilized in that problem.) February's transactions and adjusting entry information are shown below. For each item make the required entry in the General Journal. (See the General Ledger tab in the file Probiem 4-1 Forms.xis for the accounts in OPJ's accounting system.) Feb 01 Take $4,000 cash out of Big Bank to pay for February's warehouse rent. Sale of inventory to a customer – selling price $62,000 – cost of inventory sold $16,000 – customer paid cash which was deposited in Big Bank. Feb 04 Take $10,000 cash out of Little Bank to pay employees for wages they have eamed. Feb 07 Feb 15 Sale of inventory to a customer – selling price $88,000 – cost of inventory sold $22,000 – customer will pay in the future. Feb 18 Sale of inventory to a customer - selling price $110,000 – cost of inventory sold S28,000 – customer pays $40,000 cash which is deposited in Little Bank - customer will pay for the remaining amount of the sale in 30 days. Feb 22 Purchase additional inventory - pay $17,000 cash out of Big Bank for the inventory. Feb 27 Take $23,000 cash out of Little Bank to pay employees for wages they have eamed. Feb 28 Adjust the Interest Payable-Big Bank account to record the $600 of interest owed to Big Bank for February – interest will be paid in June. Feb 28 Adjust the Interest Payable-Little Bank account to record the $450 of interest owed to Little Bank for February – interest will be paid in March. Requirement 2 Post the entries from the General Journal to the General Ledger accounts. Requirement 3 Except for Retained Eamings, compute an ending balance for each General Ledger account. For Retained Earnings, place the current balance in the account. Requirement 4 Prepare a Pre-Closing Trial Balance. Requirement 5 Prepare an Income Statement for the period February 1 to February 28, 2019. This problem is for the month of February for OverPriced Jeans (OPJ). You will be using the new Revenue and Expense accounts that you learned about in this chapter to record OPJ's February transactions. Use the foms in the Excel file Problem 4-1 Forms.xls to complete this problem. Notice that the beginning balances have been put into the General Ledger accounts. These beginning account balances were the January ending account balances from Problem 2-1. Requirement 1 (If you previously completed Problem 3-1, these are the same February transactions utilized in that problem.) February's transactions and adjusting entry information are shown below. For each item make the required entry in the General Journal. (See the General Ledger tab in the file Probiem 4-1 Forms.xis for the accounts in OPJ's accounting system.) Feb 01 Take $4,000 cash out of Big Bank to pay for February's warehouse rent. Sale of inventory to a customer – selling price $62,000 – cost of inventory sold $16,000 – customer paid cash which was deposited in Big Bank. Feb 04 Take $10,000 cash out of Little Bank to pay employees for wages they have eamed. Feb 07 Feb 15 Sale of inventory to a customer – selling price $88,000 – cost of inventory sold $22,000 – customer will pay in the future. Feb 18 Sale of inventory to a customer - selling price $110,000 – cost of inventory sold S28,000 – customer pays $40,000 cash which is deposited in Little Bank - customer will pay for the remaining amount of the sale in 30 days. Feb 22 Purchase additional inventory - pay $17,000 cash out of Big Bank for the inventory. Feb 27 Take $23,000 cash out of Little Bank to pay employees for wages they have eamed. Feb 28 Adjust the Interest Payable-Big Bank account to record the $600 of interest owed to Big Bank for February – interest will be paid in June. Feb 28 Adjust the Interest Payable-Little Bank account to record the $450 of interest owed to Little Bank for February – interest will be paid in March. Requirement 2 Post the entries from the General Journal to the General Ledger accounts. Requirement 3 Except for Retained Eamings, compute an ending balance for each General Ledger account. For Retained Earnings, place the current balance in the account. Requirement 4 Prepare a Pre-Closing Trial Balance. Requirement 5 Prepare an Income Statement for the period February 1 to February 28, 2019.

Answer rating: 100% (QA)

1 General Journal Date Account Debit Credit Feb 28 2017 Sales revenue 260000 Income Summary 260000 T... View the full answer