Question

I can't figure iut wbats wrong with the trial balance and t accounts and maybe journal entries

NAME Financial Accounting Review Problem 1 JOURNALIZE THE FOLLOWING TRANSACTIONS 1. INVESTED $25.000 INTO JHJ SHOESTORE 2. Purchased $6,000 in SUPPLIES on account 3. PURCHASED 3,000 SHOES AT SIO EACH 4. PURCHASED 3,000 SHOES AT $20 EACH 5. Purchased 3,000 Shoes at $30 cach 6. PURCHASED $50,000 IN EQUIPMENT WITH A 5-year LIFE, PAYING $20,000 IN CASH AND PLACED THE REMAINING BALANCE ON A NOTE. Equipment salvage is estimated to be $5,000 7. CASH SALES OF 2,000 SHOES AT S100 EACH 8. Sales on account, 2,000 pairs of shoes at $100.00 each 9. JOURNALIZE ADJUSTING ENTRY FOR EQUIPMENT DEPRECIATION, DOUBLE DECLINING BALANCE METHOD 10. ENDING SUPPLIES $2,000; make adjusting entry II. PAID $5,000 IN DIVIDENDS 12. Collections on sales on account $150,000 13. Payment on account payable $50,000 14. Payment on note payable, $5,000 interest and $10,000 principal 15. Paid salary expense $85,000 16. Accrued salaries at end of year $4,000 *THE STORE UTILIZES WA INVENTORY METHOD* REQUIRED: 1. PREPARE INVENTORY CHART 2. PREPARE JOURNAL ENTRIES AND POST ALL ENTRIES TO LEDGER 3. PREPARE TRIAL BALANCE 4. PREPARE INCOME STATEMENT 5. PREPARE STATEMENT OF OWNERS EQUITY 6. PREPARE BALANCE SHEET 7. PREPARE CLOSING ENTRIES AND POST 8. PREPARE CASH FLOW STATEMENT

Answer 1

By Considering the information given in the problem, I have prepared Ledger Accounts and Trail Balance.

After going through the trial balance prepared by you, I have noticed that you have taken Accounts payable as $40000,

Assuming all Shoe purchases were made my cash, only Supplies are purchased on account of $6000, and payment of accounts payable by cash of $50000, will lead to accounts payable account with a debit balance of (44000).
Trial Balance sor 10,000 2. 3. 5 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Account Der Equipment 50,000 Accumulated Depreciation Repreciation Enfense 10,000 lash 20,000 Inventory 100000 Cost of Good Sold 0000 Supplies Alc 2000 Supplies Expense 4,000 Accounts receivable 50,000 Common Stock Accounts Payable sales/ Revenue Dividend Expense 5000 Interest expense 5,000 Salary expense 89,000 (Salary) Aurued Liability Note Payable Total. 4,15,000 25000 (44,000) 400000 15. 16 4.000 17. 20000 4,15,000

Ledger Account dash the To common Stock SOOO Shoe Purchase 30000 To sales 200000 Shве Кисем боооо Shoe Purchase 90000 By Equipment 20000 By Diridend 5000 By Bal eld 20000 225000 225ooo Common Stock A/C To Bal eld 2 Sooo Cash : 2 5000 25000 25ooo 4000 2.000 600 o Supplies the To accounts Payable 6ooo By Suppliers expense By Bal cld 60001 Inventory Al To Cash, 30000 By Cost of Good, sold To cash, 6 000 To Cosh 90000 | By Balche 180000 dost of Goods sold the 80000 By Bal eld 90000 (00000 18000 To Inventory 8 000 Boooo දුටට To Cash Dividend Eupenktle 5000 By Bal eld sooo Sooo sooo

Equipment Alc 20000 | By Balold 30000 500 00 To To Cash note Payable 50000 Soooo To Depreciation Alc Accumulated Repreciation TOPIL 10000 10000 To Bal eld To Balcld 10000 OOOO Aummulated Repreciation 10.00 By depreciation 10000 expens 100001 10000 Salestk 400000 By Cash 200 000 By Accounts Receivable 200,000 400,000 409000 Aucents Receivable 200000 150000 5000 200000 Aටතටමත Note Payakle | oooo в Хармах SOOOO 2000 o To sale (Gredit) By Balold To Cash To Balcld 30000 30 000 Interest Expense 5000 | By Bal old To cosh 5000.

To To 9000 Salary Alc 85000 | By Baleld -4000 Cash Aurned liability 89000 89000 Aurned liability the 4000 By salary Alc To Baleld 4000 4000 Beg Cash Accounts Payable 50000 By supplies Bey Baleld 50,000 6ooo * 44000 50000 * Assuming call Shoe Purchases were made by cash, Supplies of $6000 unas purchased on camount, cash paid $50,000, will lead to Auounts Payable A/C chaving debit balance of (44,000).
t balance of (44000).