Chart of Accounts Journal Entries

Account Name Type Transaction # Account

Cash Current Asset 1 Cash
Accounts Receivable Current Asset 1 Common Stock
Inventory Current Asset 2 Cash
Truck Asset Fixed Asset 2 Bank debt
Equipment Fixed Asset 3 Truck Asset
Accounts Payable Current Liabilities 3 Cash
Loan Other Liabilities 4 Equipment
Common Stock Equity 4 Cash
Retained Earnings Equity 5 Inventory
Sales Revenue 5 Cash
Cost of Goods Sold Expenses 5 Accounts Payable
Salaries Expense Expenses 6 Cash
Advertising Expense Expenses 6 Accounts Receivable
Rent Expense Expenses 6 Sales
Utilities Expense Expenses 7 Cost of Goods Sold
Legal Expenses Expenses 7 Inventory
Income Tax Expense Expenses 8 Advertising Expense
Interest Expense Expenses 8 Rent Expense
8 Utilities Expense
8 Legal Expenses
8 Payroll Expense
8 Cash
9 Bank debt
9 Interest Expense
9 Cash
10 Salaries Expense
10 Salaries Payable
11 Income Tax Expense
11 Cash
12 Depreciation (Truck)
12 Depreciation (Equipment)
12 Truck Asset
12 Equipment
Entries T Accounts
Debit Credit
60,000 Cash Accounts Receivable
60,000 60,000 12,000 85,000
40,000 40,000 10,000
40,000 315,000 235,000
12,000 140,000
12,000 14,000
10,000 990
10,000 3,010 85,000
260,000 Equipment Accounts Payable
235,000 10,000
25,000 2000 25000
315,000
85,000
400,000
240,000
240,000 8,000 25,000
10,000 Sales Costs of Goods Sold
60,000 400000 240,000
15,000
5,000
50,000
140,000
10,000
4,000 400,000 240,000
14,000 Rent Expense Utilities Expense
5,000 60,000 15,000
5,000
990
990
2,400
2,000
2,400 60,000 15,000
2,000 Interest Expense Payroll Expense
4,000 50,000
4,000 50,000
T Accounts Balance Sheet

Inventory Truck Asset Assets

260,000 240000 12,000 Cash
2400 Accounts Receivable
Inventory
Truck Asset
Equipment
Total Assets
20,000 9,600
Bank debt Common Stock Liabilities
40,000 60,000 Accounts Payable
10,000 Salaries Payable
Bank debt
Total Liabilities

Equity
30,000 60,000 Common Stock
Salaries Expense Advertising Expense Retained Earnings
5,000 10,000 Total Equity

Total Liabilities + Equity

Check # Should be 0

5,000 10,000
Legal Expenses Income Tax Expense
5,000 990

5,000 990
Depreciation Salaries Payable
2,400 5,000
2,000

5,000
 Retained earnings
5,610

4,400

5,610
alance Sheet Income Statement Cash Flows from Operating Activities
Net Income
Revenue
3,010 Sales 400,000 Depreciation Truck
85,000 Total Revenue 400000 Depreciation Equipment
20,000
9,600 Cost of Goods Sold 240,000 Inventories
8,000 Accounts receivable
125,610 Gross Profit 160,000 Accounts payable
Salaries Payable
Expenses
25,000 Salaries 5,000 Net Cash from Operating Activities
5,000 Advertising 10,000 Purchase of New Equipment
30,000 Rent Expense 60,000 Purchase of Truck
60,000 Utilities Expense 15,000
Payroll Expense 50,000 Net Cash Used for Investing Activities
Legal 5,000 Cash Flows from Financing Activities
60,000 Depreciation (Truck) 2,400 Increase from Common Stock Issued
5,610 Depreciation (Equipment 2,000 Increase of Loan Borrowed
65610 Income Tax 990
Interest Expense 4,000 Net Cash from Financing Activities
125,610 Total Expenses 154,390 NET INCREASE/(DECREASE) IN CASH
CASH, BEGINNING OF YEAR
0 Net Income 5,610 CASH, END OF YEAR
ting Activities
5610

2400
2000

20000
85000
25000
5000

-64990
-10000
-12000

-22000

60000
30000

90000
3010
0
3010