Question

I need chapter 3.1 done Ive already done 2.1

SOLID FOOTING 33 Chapter 3 - Transactions Affecting Retained Earnings Chapter 3 Homework Problem 3-1 Overpriced Jeans, Inc. Rips-Off Its First Customers This problem will utilize the Over Priced Jeans company (OPJ) from Problem 2-1. Remove and use the forms on Pgs 197 to 200 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 For each of the following transactions make the required entries in the General Journal: (See the General Ledger on Pg 199 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. Feb 04 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 07 Take $10,000 cash out of Little Bank to pay employees for wages they have earned. 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 $28,000 - 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 earned. 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 Compute an ending balance for each General Ledger account. Requirement 4 Prepare a Trial Balance. Requirement 5 Prepare the What Caused the Change in Retained Earnings report. Requirement 6 Prepare OPJ's Balance Sheet as of February 28, 2019

need chapter 3.1 done; all of the requirements.

Answer 1

15 ТЕ GENERAL ACCOUNTS A DEBIT CREDIT I LEBI 4,000 Rent Big Bank 4,000 FEB Y Big Bank Cost of goods sold Sales Crevenue) Inventory 62,000 16.000 62,000 16,000 FEB 7 10,000 wages Little Bank 10,000 FEB 15 88,000 22.000 88,000 22,000 A CLOUDS Receivable cost of goods sold Sales inventory Little Bank Accounts Receivabve cost or goods sold Sales inventory FE13 18 40,000 70,000 28.000 110,000 26,000 FEB 22 17,000 inventory Big Bank 17,000 wages 23,000 FEB 27 Little Bank 23,00 FEB 28 Interest (Big Bank) To interest Payable (Big Bank) 600

DT FEB 28 1 interest - Little Bank 45o interest Payable Clittle Bank) 1 450 50,000 150,000 35,000 1,35,000 inventory Cash-Big Bank Jan or to common Story 70,000 Jan 2 By Equipment Jan 05 To motos payable (55000 gando By inventory "Big Bank Jan31 BY Balance cia 1,35,000 REBI TO Balance bla 35,000 | Fenl By Rent 4,000 FeBY To Sales 62,000 penaa By wores 17,000 Feb28 By Balance qd 176,000 97,000 197,000 Cash- Little Bank Janos to common Stock 5,000 ianao By inventory 35,000 110,000 Janio To Notes payable | 60,000 Jan 25 By equipment - Little Bank gan31 By Balancecla 20,000 65.000 Feb 1 to Balance byd 20,000 Feb 7 By wages 10,ooo 40,000 Feb 2 7 By wages 23,000 Fehlo to sales Feb 34 By Balancecla 127,000 68000 60,000 EQUIPMENT | bn 3| By 134 10pce C(4 160,000 Jana To cash-BigBana 150000) Tanah To cash- Little Bank (19000 60000 60.000 160,000/Feb 28 By Balance 48 60,000 fent To Balance 62d 169.000

Tan31 TO Balance cia dance cla TCS AYARE - BIG BANK Emon By con Big Bank 65.000 165,000 Jamon By Cash! 65,000 65.000 Febas To Balance cld 65oo Febi By Baianie bid 65.000 MIOTES PAYABLE - LITILE BANK Jan3 TO Balance cld 60,000 Janio By cash 60.000 little LomK pebb To Balonce bld seba8 TO Balance cd 60,000 G0.900 60,000 60,000 COMMON STOCK Jan 31 to Balance cld 75,000 Janos Cash-Big Bank 70,000 can-Litte Book 5.000 75,000 75,000 R261 TO Bollane bol 75,000 pena8 TO Balance old Jan 20 to cash-Big Bank To cash - Little Bonk TO BERL TO Balance bla inventory 50,000 Jan 31, By Balance 85.000 35,000 85,000 85.000 185,000 Roby Cost of goods /1600 Solo 17,000 pebis COS or goud 22,000 Sold fen & LOS1 Of goods 28,000 2028 Balance 1434,000 peb 22 TO 1Big Bank

Dent re6l To Big Bank yoooj fenag By Balance 19 4,000 SY Balance eld Cost Of goods sold сер To theннony 15,00 | реь эх ду Palaте се се, доо po 15 To i prontony 22,000 pebiss To iorentuny 28,000) ales Feby By Big Bank 62,000 Feb 28 B to Balance 9 769000 Feb 15 By Accounts 88,000 Receivable Feb 18 By little Bank 40,000 BY Accounts 70,000 Receivable wages 10,000 Feb 28 By Balanceyd 33,000 rebt Pebat To Little Book TO Little Bomk 33,000 Feb 15 Feb 18 to To saves Sares Accounts Receivable 88,000 feb 28 By 120100neld 158,000 70000

interest (13ig Bank) Feb 28 To interest Payable Big Bank Cool interest payable (Big Bank ek 12y inte Ro 3+ (Big Bank) 600 (little Bank) pebas To interest Little Bank Interest payable 450 interest Payable Cuitte Bank ) Feb 28 By interest Little Bank 450 TRIAL BALANCE Dobit Credit Cash- Big Bank 76.000 cash- Little Bank 27,000 Equipment 60,000 Motes payable Big Bank 65,000 Notes payable litte Bank 60,000 Common STOCK 75,ooo inventory 36,000 Rent 4,000 Cost of goools sold 66,000 Sales 260,000 wages 133,000 Accounts Receivable 158,000 interest - Big Bank interest - Little Bank uso interest pay abre - Big Bana 600 interest pay anre - Little Bank uso TOTAL 461050 461050

Sales : 200,000 (-) Cost of goods - 66,000 Sold GROW Profit 194,oou Rent 4,000 wages. 10,000 wage 3,000 interest 600 interest uso Net profit 38,050 155,950 :: Net Prof Transfer to retained eanning = 155,950 Balance Sheet Asset Current Abet casn. Big Bank 10 000 cash - Little Bank 27,000 Accounts Receivable 158,000 inventory 36,000 TOTAL C. Asset 297,000 Fixed anet EQUIPMENT 60,000 TOTAL Ayet Liabilities & owner's equity Notes payable - Big Bank 65,000 Noto) ) Urtean 60,00 D :non14 m vа be A913ank top 1 Uttle Bank uso Common STOCK 75.000 Retained eonning iss, 950 357,000 357,000