ACCOUNTING PRINCIPLES 1

COMPREHENSIVE PROBLEM-MERCHANDISING
South Coast Board Co. is a merchandising business. The account balances for South Coast Boards Co.
Co. as of July 1, 2017 (unless otherwise indicated) are as follows:

110 Cash $ 63,600

112 Accounts Receivable 153,900
115 Merchandise Inventory 602,400
116 Prepaid Insurance 16,800
117 Store Supplies 11,400
123 Store Equipment 469,500
124 Accumulated Depreciation-Store Equipment 56,700
210 Accounts Payable 96,800
211 Salaries Payable 0
310 Rocky Hansen, Capital, August 1, 2016 555,300
311 Rocky Hansen, Drawing 135,000
312 Income Summary 0
410 Sales 3,221,100
411 Sales Returns and Allowances 92,700
412 Sales Discounts 59,400
510 Purchases 1,800,300
511 Purchase Returns and Allowance 98,500
512 Purchase Discounts 78,800
520 Sales Salaries Expense 334,800
521 Advertising expense 81,000
522 Depreciation Expense 0
523 Store Supplies Expense 0
529 Miscellaneous Selling Expense 12,600
530 Office Salaries Expense 182,100
531 Rent Expense 83,700
532 Insurance Expense 0
539 Miscellaneous Administrative Expense 7,800

During July, the last month of the fiscal year, the following transactions were completed:

July 1. Paid rent for July, $5,000.

2 Paid Watson's Co. for the amount due less 2% discount.
3 Purchased merchandise on account from Belmont Co., terms 2/10, n/30, FOB shipping point,
$4,000.
4 Paid freight on purchase of July 3, $600.
5 Received payment from Triple Creek Co., no discount.
6 Sold merchandise on account to Modesto Co., terms 2/10, n/30, FOB shipping point, $25,000.
7 Received $26,500 from Yuba Co. on account, no discount.
10 Sold merchandise for cash, $80,000.
13 Paid Belmont Co. for the amount due.
14 Issued credit memorandum to Modesto Co. for merchandise returned from July 6, purchases,
$6,000.
15 Paid advertising expense for last half of July, $7,500.
16 Received payment from Modesto Co. for July 6 sales.
19 Purchased merchandise for cash, $36,000.
19 Paid $18,000 to Bakke Co. on account less 2% discount.
20 Sold merchandise on account to Reedley Co., terms 1/10, n/30, FOB shipping point, $40,000.
For the convenience of the customer, freight of $1,100 was paid in advance.
21 Purchased merchandise on account from Nye Co., terms 1/10, n/30, FOB destination, $20,000.
24 Received credit memorandum from Nye Co. for merchandise returned to them, $2,000.
 26 Refunded cash on sales made for cash $3,000.
28 Paid sales salaries of $22,800 and office salaries of $15,200.
29 Purchased store supplies for cash, $2,400.
30 Sold merchandise on account to Whitetail Co., terms 2/10, n/30, FOB shipping point, $18,750.
30 Received cash from Reedley Co., for settlement of account due.
31 Paid Nye Co. for the amount due.

Instructions:

1. Enter the balances of each of the accounts in the appropriate balance column of four-column account
(General Ledger). Write balance in the item section and place a check mark in the Posting Reference
column.

2. Record the transactions for July, using a purchase journal, a sales journal, cash payments journal,
cash receipts journal, and a 2-column general journal.

3. Set-up the accounts receivable ledger, enter the balances.

Yuba Co. $ 26,500
Triple Creek Co. 127,400
Modesto Co. 0
Reedley Co. 0
Whitetail Co. 0

4. Set-up the accounts payable ledger, enter the balances:

Bakke Co., $ 18,000
Watson's Co. 78,800
Belmont Co. 0
Nye Co. 0

5. Post all appropriate entries in the journals to the accounts in the general ledger and subsidiary ledgers.

6. Prepare the unadjusted trial balance.

7. At the end of July, the following adjustment data were assembled.:

a. Merchandise inventory on July 31 $ 589,850

b. Insurance expired during the year 12,500
c. Store supplies on hand 4,700
d. Depreciation of Store equipment 18,800
e. Accrued salaries on July 31:
Sales salaries 4,400
Office Salaries 2,700

8. Enter the unadjusted trial balance on a 10-colum end of period worksheet and complete the worksheet.

9 Journalized the adjusting entries and post to the general ledger.

10. Prepare the adjusted trial balance.

12. Prepare the income statement, a statement of owner's equity, and balance sheet.

13. Prepare, journalize and post the closing entries.

14. Prepare a post-closing trial balance.

15. Prepare reversing entries.

 CASH RECEIPTS JOURNAL Page 1

Other Accounts Accounts

Post. Sales Sales Discounts Cash
Date Accounts Credited (Sundry) Receivable
Ref.
Cr Cr Cr Cr Dr
July 5 Triple Creek Co. ✓ 1 2 7 4 0 0 1 2 7 4 0 0
7 Yuba Co. ✓ 2 6 5 0 0 2 6 5 0 0
10 Cash Sales 410 8 0 0 0 0 8 0 0 0 0
16 Modesto Co. ✓ 1 9 0 0 0 3 8 0 1 8 6 2 0
30 Reedley Co. ✓ 4 1 1 0 0 4 0 0 4 0 7 0 0
8 0 0 0 0 2 1 4 0 0 0 7 8 0 2 9 3 2 2 0
(4 1 0) (1 1 2) (4 1 2) (1 1 0)
 SALES JOURNAL Page 1

Accounts
Invoice Post. Sales
Receivable
Date No. Accounts Debited Ref. Dr Cr
July 6 Modesto Co. ✓ 2 5 0 0 0 2 5 0 0 0
20 Reedley Co. ✓ 4 0 0 0 0 4 0 0 0 0
30 Whitetail Co. ✓ 1 8 7 5 0 1 8 7 5 0
8 3 7 5 0 8 3 7 5 0
(1 1 2) (4 1 0)
 CASH PAYMENT JOURNAL Page 1

Other Accounts Purchase

Post. Purchases Accounts Payable Cash
Date Accounts Debited (Sundry) Discounts
Ref.
Dr Dr Dr Dr Cr
July 1 Rent Expense 531 5 0 0 0 5 0 0 0
2 Watson's Co. ✓ 7 8 8 0 0 1 5 7 6 7 7 2 2 4
4 Freight-in Belmont Co. 513 6 0 0 6 0 0
13 Belmont Co. ✓ 4 0 0 0 1 6 0 3 8 4 0
15 Advertising Expense 521 7 5 0 0 7 5 0 0
19 Cash Purchase 510 3 6 0 0 0 3 6 0 0 0
19 Bakke Co. ✓ 1 8 0 0 0 3 6 0 1 7 6 4 0
20 Accounts Receivable Reedley Co. ✓/112 1 1 0 0 1 1 0 0
26 Sales Return & Allowance 411 3 0 0 0 3 0 0 0
28 Sales Salaries Expense 520 2 2 8 0 0 3 8 0 0 0
Office Salaries Expense 530 1 5 2 0 0
29 Store Supplies 117 2 4 0 0 2 4 0 0
31 Nye Co. ✓ 1 8 0 0 0 1 8 0 1 7 8 2 0
5 7 6 0 0 3 6 0 0 0 1 1 8 8 0 0 2 1 9 6 2 1 0 2 0 4
(✓) (5 1 0) (2 1 0) (5 1 2) (1 1 0)
 PURCHASES JOURNAL Page 1

Accounts Payable Other Accounts (Sundry)

Post. Purchases Post.
Date Account Credited Ref. Ref.
Amount
Cr. Dr Dr
July 3 Belmont Co. ✓ 4 0 0 0 4 0 0 0
21 Nye Co. ✓ 2 0 0 0 0 2 0 0 0 0
2 4 0 0 0 2 4 0 0 0
(2 1 0) (5 1 0)
 GENERAL JOURNAL
Page 1

Date Description A/C Debit Credit

July 14 Sales Return & Allowance 411 6 0 0 0

Accounts Receivable ✓/112 6 0 0 0

Issued credit memorandum to Modesto Co. July 6.

24 Accounts Payable ✓/210 2 0 0 0

Purchase Return and Allowances 511 2 0 0 0

Received credit memorandum

 GENERAL LEDGER
Account Name : Cash Account No. 110

Balance

Date Post.
Item Debit Credit Debit Credit
2017 Ref.

July 1 Beginning Balance ✓ 6 3 6 0 0

31 Cash Received CRJ-1 2 9 3 2 2 0 3 5 6 8 2 0

31 Cash Payment CPJ-1 2 1 0 2 0 4 1 4 6 6 1 6

Account Name : Accounts Receivable Account No. 112

Balance

Date Post.
Item Debit Credit Debit Credit
2017 Ref.

July 1 Beginning Balance ✓ 1 5 3 9 0 0

14 Sales Return GJ-1 6 0 0 0 1 4 7 9 0 0

31 Sales on Account SJ-1 8 3 7 5 0 2 3 1 6 5 0

31 Cash Received CRJ-1 2 1 4 0 0 0 1 7 6 6 0

20 Paid Freight in Advance CPJ-1 1 1 0 0 1 8 7 5 0

 GENERAL LEDGER
Account Name : Merchandise Inventory Account No. 115

Balance

Date Post.
Item Debit Credit Debit Credit
2017 Ref.

July 1 Beginning Balance ✓ 6 0 2 4 0 0

31 Closing Beginning Inventory AJE -1 6 0 2 4 0 0 0

31 Set-up Ending Inventory AJE-1 5 8 9 8 5 0 5 8 9 8 5 0

Account Name : Prepaid Insurance Account No. 116

Balance

Date Post.
Item Debit Credit Debit Credit
2017 Ref.

July 1 Beginning Balance ✓ 1 6 8 0 0

31 Insurance Expired AJE-1 1 2 5 0 0 4 3 0 0

 GENERAL LEDGER
Account Name : Store Supplies Account No. 117

Balance

Date Post.
Item Debit Credit Debit Credit
2017 Ref.

July 1 Beginning Balance ✓ 1 1 4 0 0

29 Cash Purchase CPJ-1 2 4 0 0 1 3 8 0 0

31 Store Supplies on Hand AJE-1 9 1 0 0 4 7 0 0

Account Name : Store Equipment Account No. 123

Balance

Date Post.
Item Debit Credit Debit Credit
2017 Ref.

July 1 Beginning Balance ✓ 4 6 9 5 0 0

 GENERAL LEDGER
Account Name : Accumulated Depreciation - Store Equipment Account No. 124

Balance

Date Post.
Item Debit Credit Debit Credit
2017 Ref.

July 1 Beginning Balance ✓ 5 6 7 0 0

31 Depreciation of Equipment AJE -1 1 8 8 0 0 7 5 5 0 0

Account Name : Accounts Payable Account No. 210

Balance

Date Post.
Item Debit Credit Debit Credit
2017 Ref.

July 1 Beginning Balance ✓ 9 6 8 0 0

24 Purchase Return & Allowance GJ-1 2 0 0 0 9 4 8 0 0

31 Purchase on Account PJ-1 2 4 0 0 0 1 1 8 8 0 0

31 Cash Payment CPJ-1 1 1 8 8 0 0 0

 GENERAL LEDGER
Account Name : Salaries Payable Account No. 211

Balance

Date Post.
Item Debit Credit Debit Credit
2017 Ref.

July 1 Beginning Balance ✓ 0

31 Accrued Salaries AJE-1 7 1 0 0 7 1 0 0

Account Name : Rocky Hansen, Capital, August 1, 2016 Account No. 310

Balance

Date Post.
Item Debit Credit Debit Credit
2017 Ref.

July 1 Beginning Balance ✓ 5 5 5 1 0 0

31 To Close Income Summary CJE-1 1 2 8 6 1 1 6

31 To Close Drawing CJE-1 1 1 5 1 1 1 6

 GENERAL LEDGER
Account Name : Rocky Hanse, Drawing Account No. 311

Balance

Date Post.
Item Debit Credit Debit Credit
2017 Ref.

July 1 Beginning Balance ✓ 1 3 5 0 0 0

31 Close Account CJE-1 1 3 5 0 0 0 0

Account Name : Income Summary Account No. 312

Balance

Date Post.
Item Debit Credit Debit Credit
2017 Ref.

July 1 Beginning Balance ✓ 0

31 To Close Merchandise Inventory, beginning AJE-1 6 0 2 4 0 0 6 0 2 4 0 0

31 Set-up Ending Inventory AJE-1 5 8 9 8 5 0 1 2 5 5 0

31 To Close revenue to income summary account CJE-1 3 5 6 6 3 4 6 3 5 5 3 7 9 6

31 To Close expenses to income summary accounCJE-1 2 8 2 2 7 8 0 7 3 1 0 1 6

31 To Close net income to capital CJE-1 7 3 1 0 1 6 0

 GENERAL LEDGER
Account Name : Sales Account No. 410

Balance

Date Post.
Item Debit Credit Debit Credit
2017 Ref.

July 1 Beginning Balance ✓ 3 2 2 1 1 0 0

31 Sales on Accounts SJ-1 8 3 7 5 0 3 3 0 4 8 5 0

31 Cash Sales CRJ-1 8 0 0 0 0 3 3 8 4 8 5 0

31 Close Account CJE-1 3 3 8 4 8 5 0 0

Account Name : Sales Return & Allowance Account No. 411

Balance

Date Post.
Item Debit Credit Debit Credit
2017 Ref.

July 1 Beginning Balance ✓ 9 2 7 0 0

14 Return to Modesto Co. GJ-1 6 0 0 0 9 8 7 0 0

26 Refunded Cash CPJ-1 3 0 0 0 1 0 1 7 0 0

31 Close Account CJE-1 1 0 1 7 0 0 0

 GENERAL LEDGER
Account Name : Sales Discount Account No. 412

Balance

Date Post.
Item Debit Credit Debit Credit
2017 Ref.

July 1 Beginning Balance ✓ 5 9 4 0 0

31 Cash Received CRJ-1 7 8 0 6 0 1 8 0

31 Close Account CJE-1 6 0 1 8 0 0

Account Name : Purchase Account No. 510

Balance

Date Post.
Item Debit Credit Debit Credit
2017 Ref.

July 1 Beginning Balance ✓ 1 8 0 0 3 0 0

31 Purchase on Account PJ-1 2 4 0 0 0 1 8 2 4 3 0 0

31 Cash Purchase CPJ-1 3 6 0 0 0 1 8 6 0 3 0 0

31 Close Account CJE-1 1 8 6 0 3 0 0 0

 GENERAL LEDGER
Account Name : Purchase Return & Allowance Account No. 511

Balance

Date Post.
Item Debit Credit Debit Credit
2017 Ref.

July 1 Beginning balance ✓ 9 8 5 0 0

24 Receive Credit Memorandum GJ-1 2 0 0 0 1 0 0 5 0 0

31 Close Account CJE-1 1 0 0 5 0 0 0

Account Name : Purchase Discount Account No. 512

Balance

Date Post.
Item Debit Credit Debit Credit
2017 Ref.

July 1 Beginning Balance ✓ 7 8 8 0 0

31 Cash Payment CPJ-1 2 1 9 6 8 0 9 9 6

31 Close Account CJE-1 8 0 9 9 6 0

 GENERAL LEDGER
Account Name : Sales Salaries Expense Account No. 520

Balance
Post.
Date Ref.
Item Debit Credit Debit Credit
2017

July 1 Beginning Balance ✓ 3 3 4 8 0 0

28 Paid Sales CPJ-1 2 2 8 0 0 3 5 7 6 0 0

31 Accrued Salaries AJE-1 4 4 0 0 3 6 2 0 0 0

31 Close Account CJE-1 3 6 2 0 0 0 0

Account Name : Advertising Expense Account No. 521

Balance

Date Post.
Item Debit Credit Debit Credit
2017 Ref.

July 1 Beginning Balance ✓ 8 1 0 0 0

15 Paid Advertising CPJ-1 7 5 0 0 8 8 5 0 0

31 Close Account CJE-1 8 8 5 0 0 0

 GENERAL LEDGER
Account Name : Depreciation Expense Account No. 522

Balance
Post.
Date Ref.
Item Debit Credit Debit Credit
2017

July 1 Beginning Balance ✓ 0

31 Depreciation of Store Equipment AJE-1 1 8 8 0 0 1 8 8 0 0

31 Close Account CJE-1 1 8 8 0 0 0

Account Name : Store Supplies Expense Account No. 523

Balance
Date Post.
Item Debit Credit Debit Credit
2017 Ref.

July 1 Beginning Balance ✓ 0

31 Store supplies on hand AJE-1 9 1 0 0 9 1 0 0

31 Close Account CJE-1 9 1 0 0 0

 GENERAL LEDGER
Account Name : Miscellenous Selling Expense Account No. 529

Balance
Post.
Date Ref.
Item Debit Credit Debit Credit
2017

July 1 Beginning Balance ✓ 1 2 6 0 0

31 Close Account CJE-1 1 2 6 0 0 0

Account Name : Office Salaries Expense Account No. 530

Balance
Date Post.
Item Debit Credit Debit Credit
2017 Ref.

July 1 Beginning Balance ✓ 1 8 2 1 0 0

28 Paid salaries CPJ-1 1 5 2 0 0 1 9 7 3 0 0

31 Accrued Salaries AJE-1 2 7 0 0 2 0 0 0 0 0

31 Close Account CJE-1 2 0 0 0 0 0 0

 GENERAL LEDGER
Account Name : Rent Expense Account No. 531

Balance
Post.
Date Ref.
Item Debit Credit Debit Credit
2017

July 1 Beginning Balance ✓ 8 3 7 0 0

1 Paid Rent CPJ-1 5 0 0 0 8 8 7 0 0

31 Close Accoount CjE-1 8 8 7 0 0 0

Account Name : Insurance Expense Account No. 532

Balance
Date Post.
Item Debit Credit Debit Credit
2017 Ref.

July 1 Beginning Balance ✓ 0

31 Expired Insurance AJE-1 1 2 5 0 0 1 2 5 0 0

31 Close Account CJE-1 1 2 5 0 0 0

 GENERAL LEDGER
Account Name : Miscellenous Administrative Expense Account No. 539

Balance
Post.
Date Ref.
Item Debit Credit Debit Credit
2017

July 1 Beginning Balance ✓ 7 8 0 0

31 Close Account CJE-1 7 8 0 0 0

Account Name : Freight In Account No. 513

Balance
Date Post.
Item Debit Credit Debit Credit
2017 Ref.

July 4 Paid Freight In CPJ-1 6 0 0 6 0 0

31 Close Account CJE-1 6 0 0 0

 ACCOUNTS RECEIVABLE LEDGER
Name of Debtor Yu: YUBA CO. Account Code:
Balance
Date Post.
2017 Item Ref. Debit Credit Debit Credit

July 1 Beginning Balance ✓ 2 6 5 0 0

7 Payment received CRJ-1 2 6 5 0 0 0

Name of Debtor : TRIPLE CREEK CO. Account Code:

Balance
Date Post.
2017 Item Ref. Debit Credit Debit Credit

July 1 Beginning Balance ✓ 1 2 7 4 0 0

5 Payment received CRJ-1 1 2 7 4 0 0 0

 ACCOUNTS RECEIVABLE LEDGER
Name of Debtor : MODESTO CO. Account Code:
Balance
Date Post.
2017 Item Ref. Debit Credit Debit Credit

July 6 Sales of Merchandise, FOB SP, 2/10, n/30 SJ-1 2 5 0 0 0 2 5 0 0 0

14 Sales Return & Allowance GL-1 6 0 0 0 1 9 0 0 0

17 Payment Received CRJ-1 1 9 0 0 0 0

Name of Debtor : REEDLEY CO. Account Code:

Balance
Date Post.
2017 Item Ref. Debit Credit Debit Credit

July 20 Sales of Merchandise, FOB SP, 1/10, n/30 SJ-1 4 0 0 0 0 4 0 0 0 0

30 Cash Receiveed CRJ-1 4 1 1 0 0 1 1 0 0

20 Paid Freight in Advance CPJ-1 1 1 0 0 0

 ACCOUNTS RECEIVABLE LEDGER
Name of Debtor : WHITETAIL CO. Account Code:
Balance
Date Post.
2017 Item Ref. Debit Credit Debit Credit

July 30 Sale of merchandise, FOB SP, 2/10, n/30 SJ-1 1 8 7 5 0 1 8 7 5 0

Name of Debtor : Account Code:

Balance
Post.
Date Item Ref. Debit Credit Debit Credit
 ACCOUNTS PAYABLE LEDGER
Name of Creditor : BAKKE CO. Account Code:
Balance
Date Post.
2017 Item Ref. Debit Credit Debit Credit

July 1 Beginning Balance ✓ 1 8 0 0 0

19 Cash Payment CRJ-1 1 8 0 0 0 0

Name of Creditor : WATSON CO. Account Code:

Balance
Date Post.
2017 Item Ref. Debit Credit Debit Credit

July 1 Beginning Balance ✓ 7 8 8 0 0

2 Cash Payment CPJ-1 7 8 8 0 0 0

 ACCOUNTS PAYABLE LEDGER
Name of Creditor : BELMONT CO. Account Code:
Balance
Date Post.
2017 Item Ref. Debit Credit Debit Credit

July 3 Purchase on Account PJ-1 4 0 0 0 4 0 0 0

13 Cash Payment CPJ-1 4 0 0 0 0

Name of Creditor : NYE CO. Account Code:

Balance
Date Post.
2017 Item Ref. Debit Credit Debit Credit

July 21 Puchase On Account PJ-1 2 0 0 0 0 2 0 0 0 0

24 Purchase Return & Allowance GJ-1 2 0 0 0 1 8 0 0 0

31 Cash Payment CPJ-1 1 8 0 0 0 0

 South Coast Board Co.
WORK SHEET
For the Year ended July 31, 2017
(in USDollar)

Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet

Items Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit

110 Cash 1 4 6 6 1 6 1 4 6 6 1 6 1 4 6 6 1 6

112 Account Receivable 1 8 7 5 0 1 8 7 5 0 1 8 7 5 0

115 Merchandise Inventory 6 0 2 4 0 0 a 5 8 9 8 5 0 a 6 0 2 4 0 0 5 8 9 8 5 0 5 8 9 8 5 0

116 Prepaid Insurance 1 6 8 0 0 b 1 2 5 0 0 4 3 0 0 4 3 0 0

117 Store Supplies 1 3 8 0 0 c 9 1 0 0 4 7 0 0 4 7 0 0

123 Store Equipment 4 6 9 5 0 0 4 6 9 5 0 0 4 6 9 5 0 0

124 Accumulated Depreciation - Store Equipment 5 6 7 0 0 d 1 8 8 0 0 7 5 5 0 0 7 5 5 0 0

210 Account Payable 0 0 0

211 Salaries Payable 0 e 7 1 0 0 7 1 0 0 7 1 0 0

310 Rocky Hansen, Capital, August 1 2017 5 5 5 1 0 0 5 5 5 1 0 0 5 5 5 1 0 0

311 Rocky Hansen, Drawing 1 3 5 0 0 0 1 3 5 0 0 0 1 3 5 0 0 0

312 Income Summary 0 a 6 0 2 4 0 0 a 5 8 9 8 5 0 6 0 2 4 0 0 5 8 9 8 5 0 6 0 2 4 0 0 5 8 9 8 5 0

410 Sales 3 3 8 4 8 5 0 3 3 8 4 8 5 0 3 3 8 4 8 5 0

411 Sales Return & Allowance 1 0 1 7 0 0 1 0 1 7 0 0 1 0 1 7 0 0

412 Sales Discount 6 0 1 8 0 6 0 1 8 0 6 0 1 8 0

510 Purchase 1 8 6 0 3 0 0 1 8 6 0 3 0 0 1 8 6 0 3 0 0

511 Purchase Return & Allowance 1 0 0 5 0 0 1 0 0 5 0 0 1 0 0 5 0 0

512 Purchase Discount 8 0 9 9 6 8 0 9 9 6 8 0 9 9 6

513 Freight - In 6 0 0 6 0 0 6 0 0

520 Sales Salaries Expense 3 5 7 6 0 0 e 4 4 0 0 3 6 2 0 0 0 3 6 2 0 0 0

521 Advertising Expense 8 8 5 0 0 8 8 5 0 0 8 8 5 0 0

522 Depreciation Expense 0 d 1 8 8 0 0 1 8 8 0 0 1 8 8 0 0

523 Store Supplies Expense 0 c 9 1 0 0 9 1 0 0 9 1 0 0

529 Miscellaneous Expense 1 2 6 0 0 1 2 6 0 0 1 2 6 0 0

530 Office Salaries Expense 1 9 7 3 0 0 e 2 7 0 0 2 0 0 0 0 0 2 0 0 0 0 0

531 Rent Expense 8 8 7 0 0 8 8 7 0 0 8 8 7 0 0

532 Insurance Expense 0 b 1 2 5 0 0 1 2 5 0 0 1 2 5 0 0

539 Miscellaneous Administrative Expense 7 8 0 0 7 8 0 0 7 8 0 0

4 1 7 8 1 4 6 4 1 7 8 1 4 6 1 2 3 9 7 5 0 1 2 3 9 7 5 0 4 7 9 3 8 9 6 4 7 9 3 8 9 6 3 4 2 5 1 8 0 4 1 5 6 1 9 6 1 3 6 8 7 1 6 6 3 7 7 0 0

Net Income 7 3 1 0 1 6 7 3 1 0 1 6

4 1 5 6 1 9 6 4 1 5 6 1 9 6 1 3 6 8 7 1 6 1 3 6 8 7 1 6
 South Coast Board Co.
Income Statement
For The Year Ended July 31, 2017
(in USDollar)

Revenues from Sales

Sales 3,384,850
Less: Sales returns and allowance 101,700
Sales discounts 60,180 161,880
Net sales 3,222,970

Cost of goods sold

Merchandise inventory, July 1 602,400
Purchases 1,860,300
Less : Purchase returns and allowance 100,500
Purchase discounts 80,996 181,496
Net Purchases 1,678,804
Freight-in 600
Net cost of goods purchased 1,679,404
Goods available for sale 2,281,804
Less : Merchandise inventory, July 31 589,850
Cost of goods sold 1,691,954

Gross Profit 1,531,016

Operating expenses
Selling expenses:
Sales Salaries Expense 362,000
Advertising Expense 88,500
Depreciation Exense 18,800
Store Supplies Expense 9,100
Miscellaneous Expense 12,600
Total selling expenses 491,000
General and Administrative expenses:
Office Salaries Expense 200,000
Rent Expense 88,700
Insurance Expense 12,500
Miscellaneous Administrative Expenses 7,800
Total Administrative Expenses 309,000
Total operating expenses (800,000)

NET INCOME FROM OPERRATIONS 731,016

 South Coast Board Co.
Statement of Owners' Equity
For The Year Ended July 31, 2017
(in USDollar)

Rocky Hansen, Capital, August 1 2016 555,100

Net Income, 2017 731,016
Total 1,286,116
Less : Rocky Hansen, Drawing (135,000)

Rocky Hansen, Capital, July 31 2017 1,151,116

South Coast Board Co.

Statement of Financial Position
July 31, 2017
(in USDollar)

ASSETS
Current Assets:

Cash 146,616
Account Receivable 18,750
Merchandise Inventory 589,850
Prepaid Insurance 4,300
Store Supplies 4,700
Total Current Assets ### 764,216

Plant, Property & Equipment

Store Equipment 469,500
Less : Accumulated Depreciation - Store Equipment 75,500
Total Plant, Property & Equipment 394,000

TOTAL ASSETS 1,158,216

LIABILITIES AND OWNER'S EQUITY

Liabilities:

Accounts Payable 0
Salaries Payable 7,100
Total Liabilities 7,100

Owner's Equity:
Rocky Hansen, Capital, July 31, 2017 1,151,116

TOTAL LIABILITIES AND OWNER'S EQUITY 1,158,216

 ADJUSTING JOURNAL ENTRIES Page 1
Date
2017 Description A/C Debit Credit

July 31 Income Summary 312 6 0 2 4 0 0

Merchandise Inventory 115 6 0 2 4 0 0

To close beginning merchandise inventory.

31 Merchandise Inventory 115 5 8 9 8 5 0

Income Summary 312 5 8 9 8 5 0

To record Merchandise inventory on July 31

31 Insurance Expense 532 1 2 5 0 0

Prepaid Insurance 116 1 2 5 0 0

To record expired insurance, July 31

31 Store Supplies Expense 523 9 1 0 0

Store Supplies 117 9 1 0 0

To record Store supplies used.

31 Depreciation Expense 522 1 8 8 0 0

Accumulated depreciation - Store Equiment 124 1 8 8 0 0

To record depreciation of Store Equipment

31 Sales Salaries Expense 520 4 4 0 0

Office Salaries Expense 530 2 7 0 0

Salaries Payable 211 7 1 0 0

To record accrued salaries on July 31

 CLOSING JOURNAL ENTRIES Page 1
Date
2017 Description A/C Debit Credit

July 31 Sales 410 3 3 8 4 8 5 0

Purchase Return & Allowance 511 1 0 0 5 0 0

Purchase Discount 512 8 0 9 9 6

Income Summary 312 3 5 6 6 3 4 6

To close all revenue to Income Summary

31 Income Summary 312 2 8 2 2 7 8 0

Sales Return & Allowancees 411 1 0 1 7 0 0

Sales Discount 412 6 0 1 8 0

Purchase 510 1 8 6 0 3 0 0

Freight - In 513 6 0 0

Sales Salaries Expense 520 3 6 2 0 0 0

Advertising Expense 521 8 8 5 0 0

Depreciation Expense 522 1 8 8 0 0

Store Supplies Expense 523 9 1 0 0

Miscellaneous Expense 529 1 2 6 0 0

Office Salaries Expense 530 2 0 0 0 0 0

Rent Expense 531 8 8 7 0 0

Insurance Expense 532 1 2 5 0 0

Miscellaneous Administrative Expense 539 7 8 0 0

To close all expenses account to Income Summary

31 Income Summary 312 7 3 1 0 1 6

Rocky Hansen, Capital 310 7 3 1 0 1 6

To close Income Summary to Capital

31 Rocky Hansen, Capital 310 1 3 5 0 0 0

Rocky Hansen, Drawing 311 1 3 5 0 0 0

To close Drawing to Capital

 SOUTH COAST BOARD CO.
Post-Closing Trial Balance
July 31, 2017
(in USDollar)

Debit Credit

110 Cash 1 4 6 6 1 6

112 Accounts Receivable 1 8 7 5 0

115 Merchandise Inventory 5 8 9 8 5 0

116 Prepaid Insurance 4 3 0 0

117 Store Supplies 4 7 0 0

123 Store Equipment 4 6 9 5 0 0

124 Accumulated Depreciation - Store Equipment 7 5 5 0 0

211 Salaries Payable 7 1 0 0

310 Rocky Hansen, Capital 1 1 5 1 1 1 6

1 2 3 3 7 1 6 1 2 3 3 7 1 6
 REVERSING JOURNAL ENTRIES Page 1
Date
2017 Description A/C Debit Credit

Aug. 1 Salaries Payable 211 7 1 0 0

Sales Salaries Expense 520 4 4 0 0

Office Salaries Expense 530 2 7 0 0

To reverse adjusting entry for accrued salaries expense