Question

Chapter 3 Additional Problem Problem 3-3 Gray Co. Makes Its First Sale This problem repeats Gray Co.'s February transactions from Chapter 3. Print the forms on the following pages and use them to complete this problem. Requirement 1 A. Gray Co. has the following General Ledger accounts: Cash, Accounts Receivable, Inventory, Equipment, Note Payable, Interest Payable, Common Stock, and Retained Earnings. Label these accounts in Gray Co.'s General Ledger. B. Enter the February beginning account balance into each account. An account's January ending balance becomes the account's February beginning balance. Look on the January tab in the 2-Gray Co workbook to find each account's January ending balance. Accounts that are new in February will have zero beginning balances. Label these amounts as "Beg. Bal." Requirement 2 For each of the following transactions make the required entries in the General Journal: Feb 01 Sale of inventory to a customer – selling price $9,000 - cost of inventory sold $5,000 - customer paid cash. Feb 02 Pay $700 cash to landlord for February's rent. Feb 07 Pay $1,000 cash to employees for wages they have earned. Feb 10 Sale of inventory to a customer – selling price $4,500 - cost of inventory sold $2,000 - customer will pay sometime in the future. Feb 11 Purchase additional inventory - pay $7,500 cash for the inventory. Feb 26 Pay $900 cash to employees for wages they have earned. Feb 27 Collect $1,500 cash from the customer who was sold to on credit on Feb. 10. Feb 28 Adjust the Interest Payable account to record the $40 of interest owed to the bank - interest will be paid in March. Requirement 3 Post the entries from the General Journal to the General Ledger accounts. Requirement 4 Compute an ending balance for each General Ledger account. Chapter 3 Additional Problem --SOLID FOOTING Problem 3-3 Gray Co. Makes Its First Sale (continued) Requirement 5 Prepare a Trial Balance. Requirement 6 Prepare Gray Co.'s Balance Sheet as of February 28, 2019.