Completerequirements 1 through 3 of Jane's Skateboards for the first milestone of the course project. You have the option of using either the T-Accounts tab for posting Journal Entries or the General Ledger tab.

You will use the Excel Project Template for Jane's Skateboards attached below.

DO NOT change the Excel template drop-down menus or formulas that are already in the template.

You should watch the videos in the Content tab above, under Week 2, to assist you in preparing this assignment. What we're going to do today is to prepare the journal entries and the general ledger. Now, the first step I would suggest for you is to go to the July transactions, which are here, and highlight those, and do the print selection off your Excel spreadsheet, so you don't try to print the whole thing, so you at least have the journal entries there available for you. Next step is to go to the chart of accounts and do the print selection on the chart of accounts so you'll know which accounts are available for you to record your journal entries. Well, given that, let's record some journal entries. And you'll notice in your chart of accounts, it has the debit and credit normal balances. And that is the side that you go to when you go to increase the count. And if you want to decrease the counts, you go to the opposite side of the normal balance. So starting at our first transaction on our list of transactions in July, we began business by making a deposit in a company bank account for $10,000 in exchange for 10,000 shares of $1 par common stock. That means this is a corporation. So I'm on 2022. And I want to do that as a-- I want numbers. Don't like my format on that one. Let's do that on-- there we go, 2022 with no decimal points, because generally-- well, it doesn't want-- generally, you would list the year at the beginning of a journal. And then this is on July 1. So we have cash, which, in our general ledger, says account 111. Account number goes first for the debit account. And we can put the title in, cash. And we received $10,000 for $10,000 worth of common stock. It is customary to space over a little bit when you list the second account. And common stock in our general ledger and chart of accounts is account number 311. And we got that. Our second set of-- second transaction for this date is purchase racks for display bikes in the store room. And we have to find the account that we'd use for something like racks. It's going to be in an asset section, because it's something we own. And we have an account 144 for store fixtures. . So looking at my journal entries, the first transaction was a debit to cash for $10,000 in exchange for $10,000 worth of common stock. That's transaction number one. Transaction number two on July 1 was a debit to stores fixtures for $1,200 do and a credit to cash for $1,200. And the credit to cash reduces its balance because cash is a debit balance account. Transaction number three was purchasing prepaid insurance for $2,400 out of the cash account. Transaction number four, we paid for the rent for $700. And that's going to be account number 511 for $700. And that is credit to cash to pay that. On July 6, we bought merchandise inventory, which is debit inventory for $6,000 and to credit cash for $6,000. So let's credit cash and debit inventory. And that was for 100 bikes at $60 each. On July 8, we bought some store supplies on account, which means we'll pay for them later. So we have a debit to store supplies and a credit to accounts payable. And you'll notice I didn't explain this earlier, but the debit side of these accounts is on the left and the credit side's on the right. That's why we're entering them that way. And on July 10, we pay the telephone expense for $100. And obviously, I'm not mailing these until I get some sales going in but I record the entry when it happened. And here comes my sale, which makes things much better. On July 11, I sold for cash $900 worth of bikes, which puts my cash balance back in the positive. And I can put those checks in the mail. So debit cash for $900, we have a debit for cost of goods sold for the cost of the bikes that were sold. We've got a credit inventory for $600. So this in effect, moves the cost of the inventory from an asset account inventory to an expense account cost of goods sold. And then we'll record sales revenue for the amount we sold them for for $900. On July 18, since we have a little bit of extra money, we're going to pay $80 on our supplies accounts payable. So maintain good credit, it's a good idea to pay your suppliers. So a debit against accounts payable reduces the balance to $120 because accounts payable is a credit balance account. On July 20, we have another sale, a cash sale of bicycles for $1,260. And that is our sales revenue. The cost of goods sold for those bikes is $840, which goes into cost of goods sold that comes out of inventory. On July 31, we found some more customers that purchased $2,700 worth of bikes, which brings our sales revenue up. The cost of goods sold for those bikes, he has $1,800. And that comes out of inventory. OK, on the 31, we paid the electric bill for $360. And I have an expense account for that somewhere. It's number 517 for $360. And then the last thing we did is we declared and we paid dividends. Dividends is not an expense, but we do record that. It reduces our capital, I mean, our retained earnings account and also our cash account. Dividends is a negative against retained earnings. So in other words, we'll look at this later but retained earnings starts out with zero and accumulates all the dead income that the company's earn less the dividends that are palpate out. So even though we haven't posted income yet, we've posted some dividends, which will reduce our income at our retained earnings at the end of the year. And that will be explained more when we do the closing entries and the financial statements. Now, you notice I've done the math in here. These debits minus these credits give me a debit balance of $3,560 for cash. Like to remember the amount for when I get that page. Another $3,520. You'll find out pretty quickly that it doesn't balance if you enter the wrong amount.

The Store Supplies is $200 and Pre-paid Insurance is $2,400.

OK. The next one is Merchandise Inventory. It ends at $2,760. Then we have Store Fixtures for $1,200. Next account that has a balance is Accounts Payable, it's a credit balance of $120. And we have Common Stock in the General Ledger, $10,000. You'll see Dividends is $500, so we'll enter those. Dividends is a debit balance account.

Over in the General Ledger we've added up all the Sales Revenue, $4,860. Cost of Goods Sold, $3,240. A Store Rent, $700. Telephone is $100. And I think $360 for the Electric Bill. Let's check that. We're good.