Question

Iaurnal sashannie OverPriced Jeans, Inc. Transactions Additional Information March 2019 Transactions Description of the Transaction Date Owners of OPJ invested an additional $55,000 cash into the business. (As an example of how to journalize and post a transaction-this transaction has already been entered into the General Jounal and posted to the General Ledger.) The cash is put into Big Bank March 1 Pay off the $60,000 Note Payable owed to Little Bank. out of Big Bank. Also pay to Little Bank $450 for interest owed on the Note Payable for February. The $450 cash is also taken out of Big Bank. The cash to pay off the note is taken March 1 Take $4,600 cash out of Big Bank to pay for March's rent March 1 The customer that purchased on credit on February 15 pays $88,000 cash to pay off the amount due. The cash is deposited into Big Bank March 2 March 10 Sale of inventory to a customer- selling price $92,050-cost of the inventory sold $23,500. The customer pays cash. The cash is deposited into Little Bank. March 15 Take $26,000 cash out of Little Bank to pay employees for wages they have earned. March 16 Purchase $85,250 of additional inventory OPJ will pay the manufacturer 50 % of the $85,250 in 10 days. OPJ will pay the remaining 50 % in 30 days. March 17 Sale of inventory to a customer- selling price $109,000- cost of the inventory sold $36,000. The customer will pay for the purchase in 30 days. March 20 Sale of inventory to a customer- seling price $183,500-cost of the inventory sold $43,000. The customer pays $25,000 cash that is deposited into Little Bank. The customer will pay the remaining amount in 30 days. March 22 Purchase inventory for $42,000 cash. The cash is taken out of Big Bank March 26 Pay the manufacturer the 50 % due on the March 16th purchase of inventory. The cash is taken out of Big Bank. 42, 62 5 March 30 Take $39,000 cash out of Little Bank to pay employees for wages they have earned. Additional Information Interest due to Big Bank on the Note Payable for the month of March is $700. As of March 31 OPJ owes Big Bank a total of $1,300 for interest (5600 for February+ $700 for March), Interest will be paid to Big Bank in June. Note Payable Big Bank:

create a journal for this company

Answer 1

In the books of Overpriced Jeans, Inc. Journal Entries General Journal Date Description Debit(in $) Mar-01 Cash 55,000 Capital (being capital introduced into business) Credit (in $) 55,000 55,000 Mar-01 Big bank Cash (being cash deposited in big bank) 55,000 60,450 Mar-01 Cash Big bank (being cash withdrwawn from Big bank) 60,450 60,000 450 Mar-01 Note payable Interest Payable Cash (being notes payable along with interest is settled) 60,450 4,600 Mar-01Cash Big bank (being cash withdrwawn from Big bank) 4,600 4,600 Mar-01 Rent expense Cash (being rent paid from big bank) 4,600 88,000 Mar-02 Cash Accounts Receivable (being cash received from customer) 88,000 88,000 Mar-02 Big bank Cash (being cash deposited in big bank) 88,000 92,050 Mar-10 Cash Sales Revenue (being cash sales made) 92,050 92,050 Mar-10 Little bank Cash (being cash deposited in little bank) 92,050 23,500 Mar-10 Cost of goods sold Merchandise Inventory (being inventory sold) 23,500 26,000 Mar-15 Cash Little bank (being cash withdrawn) 26,000 26,000 Mar-15 Wages cash (being wages paid) 26,000 85,250 Mar-16 Merchandise Inventory Accounts Payable (being inventory purchased) 85,250 1,09,000 Mar-17 Accounts Receivable Sales Revenue (being sales made) 1,09,000 36,000 Mar-17 Cost of goods sold Merchandise Inventory (being inventory sold) 36,000 25,000 1,58,500 Mar-20 Cash Accounts Receivable Sales Revenue (being sales made) 1,83,500 25,000 Mar-20 Little Bank Cash (being cash deposited in little bank) 25,000 43,000 Mar-20Cost of goods sold Merchandise Inventory (being inventory sold) 43,000 42,000 Mar-22 Cash Big Bank (being cash withdrawn) 42,000 42,000 Mar-22 Merchandise Inventory Cash (being cash purcahes made) 42,000 42,625 Mar-26 Accounts Payable Cash (being cash paid to accounts payable) 42,625 42,625 Mar-26 Cash Big Bank (being cash withdrawn) 42,625 39,000 Mar-30 Cash Little bank (being cash withdrawn) 39,000 39,000 Mar-30 Wages cash (being wages paid) 39,000 700 Mar-30 Interest Expense Notes Payable-Big bank (being interets expenses accrued) 700