Question

Following is a complete list of accounts and account balances that appear in the general ledger as of August 1, 2020 for Flourish and Botts, Co. bookstore. Assume all accounts have their normal debit or credit balance.

Account:	Amount:		Account:	Amount:
Cash	$9,021		Common Stock	$84
Accounts Receivable (A/R)	$13,992		Additional Paid-In Capital	$6,408
Inventory	$4,033		Retained Earnings	$7,220
Prepaid Rent	$200		Sales Revenue	$0
Equipment	$7,200		Cost of Goods Sold	$0
Accumulated Depreciation-Equipment	$800		Wages Expense	$0
Accounts Payable (A/P)	$11,844		Interest Expense	$0
Deferred Revenue	$3,055		Depreciation Expense	$0
Interest Payable	$35		Rent Expense	$0
Notes Payable	$5,000

The following transactions were observed for August 2020:

Date:	Transaction:
8/3	Purchased merchandise inventory on account for $11,941
8/6	Sold merchandise inventory, which originally cost $13,088, to customers for $20,972. Customers paid $2,400 in cash, the remaining $18,572 was purchased by customers on account.
8/16	Paid $2,750 in cash to workers for work done in August.
8/20	Received $17,046 in cash payments from customers on their accounts receivable.
8/27	Paid creditors $14,635 in cash for accounts payable.

PART A : Record all of the above transactions that occurred during the period using journal entries. Make sure to use proper formatting for all entries, and to include the date of each entry and a brief description of each entry. Do not make any end of the period adjusting or closing entries.

PART B : After recording the above transactions, calculate the ending balance that would appear on the August 31, 2020 unadjusted trial balance for Flourish and Botts for the following accounts. You must show your work, such as a formula or T-account used to arrive at your answer:

1. Cash
2. A/R
3. Inventory
4. A/P

Answer 1

PART A - Journal Entries:

Date	Ledger Name	Debit	Credit
3rd Aug	Purchases A/c	$ 11,941.00
	To Accounts Payble A/c		$ 11,941.00
	(Purchased merchandise inventory on account)
6th Aug	Cash A/c	$   2,400.00
	Accounts Receivalbes A/c	$ 18,572.00
	To Sales Revenue A/c		$ 20,972.00
	Sold merchandise inventory on cash as well as account)
16th Aug	Wages Expense A/c	$   2,750.00
	To Cash A/c		$   2,750.00
	(Paid $2,750 in cash to workers for work done in August)
20th Aug	Cash A/c	$ 17,046.00
	To Accounts Receivalbes A/c		$ 17,046.00
	(Received $17,046 in cash payments from customers on their accounts receivable)
27th Aug	Accounts Payble A/c	$ 14,635.00
	To Cash A/c		$ 14,635.00
	(Paid creditors $14,635 in cash for accounts payable)

PART A - Unadjusted Trial Balance as on Aug 31, 2020:

1. Cash A/c

Date	Particulars	Amount	Date	Particulars	Amount
08-01-2020	To Balance b/d	$   9,021.00
08-06-2020	To Sales Revenue A/c	$   2,400.00	08/16/2020	By Wages Expense A/c	$   2,750.00
08/20/2020	To Accounts Receivalbes A/c	$ 17,046.00	08/27/2020	By Accounts Payble A/c	$ 14,635.00
			08/31/2020	By Balance c/d	$ 11,082.00
		$ 28,467.00			$ 28,467.00

2. Accounts Receivalbes A/c

Date	Particulars	Amount	Date	Particulars	Amount
08-01-2020	To Balance b/d	$ 13,992.00
08-06-2020	To Sales Revenue A/c	$ 18,572.00	08/20/2020	By Cash A/c	$ 17,046.00
			08/31/2020	By Balance c/d	$ 15,518.00
		$ 32,564.00			$ 32,564.00

3. Inventory A/c

Date	Particulars	Amount	Date	Particulars	Amount
08-01-2020	To Balance b/d	$   4,033.00
08-03-2020	To Purchases A/c	$ 11,941.00	08-06-2020	By Cost of Goods Sold A/c	$ 13,088.00
			08/31/2020	By Balance c/d	$   2,886.00
		$ 15,974.00			$ 15,974.00

4. Accounts Payble A/c

Date	Particulars	Amount	Date	Particulars	Amount
			08-01-2020	By Balance b/d	$ 11,844.00
08/27/2020	To Cash A/c	$ 14,635.00	08-03-2020	By Purchases A/c	$ 11,941.00
08/31/2020	To Balance C/d	$   9,150.00
		$ 23,785.00			$ 23,785.00