Question

Part B: Post the Journal Entries you made in Part A to the appropriate T-Accounts found in Part B. Your T-Account entries must be properly linked to the Journal Entry amounts you entered in Part A. The first T-Account posting has been done for you. ALSO, provide calculations at the bottom of the T-Accts on this worksheet to prove that your Accounting Equation balances.(16.5 points-graded for accuracy and format, including proper use of Excel spreadsheet links and formulas) Your Accounting Equation Check Figures are: Assets of $671,515 = Liabilities of $521,414 + Equity of $150,101. Note that you should never have a bracketed amount listed anywhere in any T-Account. T-Accounts: Assets Liabilities Equity Prepaid Insurance Accounts Payable Salaries & Wages Expense Cash ####### Common Stock ####### 1 1 Retained Earnings Building Salaries & Wages Payable Insurance Expense Accounts Receivable Sales Revenue Display Equipment Interest Payable Depreciation Expense Inventory Cost of Goods Sold Accum Depr-P&E Bank Loan Payable Interest Expense Mortgage Note Payable

Answer 1

Dear Student

Journal in the books of Be Jeweled Inc.
Date	Particulars		Debit	Credit
			Amount	Amount
			($)	($)
01-02-2017	Cash A/c (7,100 x 21)	Dr.	1,49,100
	To Share Capital A/c			1,49,100
	(Being Stock issued at par)
02-01-2017	Display Equipment A/c	Dr.	2,400
	To Cash A/c			2,400
	(Being Display Equipment (Furniture and Fixtures) purchased)
02-01-2017	Building A/c	Dr.	3,48,000
	To Cash (348,000 x 35%)			1,21,800
	To Mortgage Loan			2,26,200
	(Being building purchased and 35% paid in cash remaining to be converted into mortgage loan to be paid annually)
02-01-2017	Purchase A/c	Dr.	66,350
	To Sundry Creditor			66,350
	(Being Inventory purchased)
02-01-2017	Advance Insurance Charges A/c	Dr.	2,100
	To Cash			2,100
	(Being paid for Insurance charges)
02-26-2017	Sundry Debtor A/c	Dr.	8,500
	To Sales A/c			8,500
	(Being Jewellery sold)
04-01-2017	Cash A/c	Dr.	2,60,000
	To Bank Loan A/c			2,60,000
	(Being Bank loan received)
04-02-2017	Sundry Creditor A/c	Dr.	42,000
	To Cash A/c			42,000
	(Being paid in cash)
04-30-2017	Cash A/c	Dr.	5,505
	To Sundry Debtor A/c			5,505
	(Being amount received))
06-30-2017	Cash A/c	Dr.	62,835
	To Sales A/c			62,835
	(Being Sales made)
06-30-2017	NO entry as to book stock as we have already made entries for purchases and sales
06-30-2017	salary and wages A/c	Dr.	28,065
	To Cash A/c			24,530
	To Salary and Wages Payable A/c			3,535
	(Being salary and wages paid and remaining to be paid in july)
06-30-2017	Depreciation A/c (3,48,000 / 40 x 5/12)	Dr.	3,625
	To Accumulated Depreciation A/c			3,625
	(Being Depreciation charged on Building for 5 months)
06-30-2017	Depreciation A/c (2400 / 10 x 5/12)	Dr.	100
	To Accumulated Depreciation A/c			100
	(Being Depreciation charged on Display Equipment for 5 months)
06-30-2017	Insurance Charges A/c (2400 x 5/12)	Dr.	875
	To Advance Insurance Charges A/c			875
	(Being out of total advance insurance paid , Insurance for 5.5 months in booked as expense)
06-30-2017	Interest A/c (226,200 x 4.5% x 5/12)	Dr.	4,241.25
	Interest A/c (260,000 x 4.75% x 3/12)	Dr.	3,087.50
	To Interest Payable A/c			7,328.75
	(Being interest on loan due)

Cash A/c
					Cr.
Date	Particulars	Amt	Date	Particulars	Amt
		($)			($)
01-02-2017	To Share Capital A/c	1,49,100	02-01-2017	By Display Equipment A/c	2,400
04-01-2017	To Bank Loan A/c	2,60,000	02-01-2017	By Building A/c	1,21,800
04-30-2017	To Sundry Debtor A/c	5,505	02-01-2017	By Advance Insurance A/c	2,100
06-30-2017	To Sales A/c	62,835	04-02-2017	By Sundry Creditor A/c	42,000
			06-30-2017	By Salary and Wages A/c	24,530
				By Bal C/d	2,84,610
		4,77,440			4,77,440

Accounting Equation:

Total Total Total Liabilities Capital (Liabilities + Assets (Assets) (Liabilities) Capital) Accumult Salary Transc Interest Mortgage Display Advance Sundry ed and Bank Loan Cash Building Stock Creditor ation Account Insurance Debtor Depreciat A/c Equipment Payable Wages Loan No. ion Payable 1,49,100 1,49,100 Share Capital 1,49,100 1,49,100 (2,400) 3 (1,21,800) 2,400 2,26,200 3,48,000 2,26,200 2,26,200 2,26,200 (66,350) Purchase A/c 4 66,350 66,350 (2,100) 2,100 8,500 8,500 Sales A/c 6. 8,500 8,500 2,60,000 2,60,000 2,60,000 2,60,000 2,60,000 (42,000) (42,000) (42,000) (42,000) (42,000) 5,505 (5,505) 62,835 Sales A/c 10 62,835 62,835 62,835 36,010 36,010 11 36,010 36,010 Closing Stock (24,530) (3,625) (100) (24,530) 3,535 (28,065) Salary and Wages A, (24,530) 12 3,535 (3,625) (100) (3,625) (3,625) Depreciation 13 (100) (100) Depreciation 14 (875) (875) (875) Insurance Charges (875) 15 7,329 (7,329) Interest A/c 16 7,329 2,995 (3,725) 6,71,515 = 24,350 5,21,414 + 2,84,610 2,400 3,48,000 1,225 36,010 2,26,200 2,60,000 1,50,101 = 6,71,515

Please note that :

1. Closing Stock is Calculated as Purchases - Cost of Goods sold = 66,350 - 30,340 = 36,310/-

No Journal entry is made for closing stock.

2. Some Name of Accouts are different like Accounts payable is written as sundry debtors, Prepaid insurance is written as Advance Insurance.

3. Due to lack of space some accounts are not posted.

Regards