Accounting Text and Cases Chapter 4 Case 4-1

1295 Words6 Pages
Ateneo Graduate School of Business
MBA Standard
Financial Accounting
TEAM DAVAO
Group Members: Martha Herrera, Katrina Ortega, Chris Almeda, Gil Fernandez
Presentation for Case 4-1

CASE

PC Depot was a small retail store for personal computers and hand-held calculators, selling several national brands in each product line. The store was opened in early September by Barbara Thompson, a young woman previously employed in direct computer sales for a national firm specializing in business computers.

Thompson knew the importance of adequate records. One of her decisions, therefore, was to hire Chris Jarrard, a local accountant, to set up her bookkeeping system.

Jarrard wrote up the store’s pre-opening financial transactions in
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Prepare journal entries and post to the ledger accounts. (Do not prepare closing entries.)

Journal Entries

ACCOUNTS
DEBIT
CREDIT
9
Cash
38,000

Sales Revenues

38,000
10
Accounts Receivable
14,850

Sales Revenues

14,850
11
Cash
3,614

Accounts Receivable

3,614
12
Accounts Payable
96,195

Cash

96,195
13
Merchandise Inventory
49,940

Accounts Payable

49,940
14
Cost of Goods Sold
38,140

Merchandise Inventory

38,140
15
Wages Expense
688

Cash

688
16

17
Prepaid Rent
1,485

Cash

1,485
18
Prepaid Insurance
2,310

Cash

2,310
19
Utilities Expense
226

Accounts Payable

226
20
Equipment (Signage)
1,760

Cash

660

Accounts Payable

1,100

Updated Ledger Accounts

Cash

Bank Loan Payable

Proprietor’s Capital
(1) 165,000 (2) 1,485

(1) 100,000

(1) 165,000
(9) 38,000
(4) 15,500

(11) 3,614
(5) 1,320

(6) 935

(7) 1,100

(8) 275

(12) 96,195

(15) 688

(17) 1,485

(18) 2,310

(20) 660

Rent Expense

Merchandise Inventory

Accounts Payable
(2) 1,485

(3)

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