Date Particulars Acct. No.

Jan. 1, 201x1
1 Inventory
Accounts Payable
To record purchased of inventories on account.

2 Accounts Receivable
Sales

Cost of goods sold

Inventory
To record sales of inventories on account.

3 Cash
Accounts Receivable
To record collection of accounts receivable.

4 Accounts Payable
Cash
To record payment of accounts payable.

5 Salaries Expense
Cash
To record salaries expense.

6 Utilities Expense
Cash
To record utilities expense.
Debit Credit

600,000
600,000

1,600,000
1,600,000

560,000
560,000

1,490,000
1,490,000

490,000
490,000

820,000
820,000

64,000
64,000
 ASSETS

Cash Accounts Receivable

Beg. 280,000 Beg. 60,000
3 1,490,000 2 1,600,000
490,000 4 1,490,000 3
820,000 5 170,000
64,000 6
396,000 Equipment
Beg. 300,000
Inventory
Beg. 140,000
1 600,000
560,000 2
180,000

Accumulated Depreciation
180,000 Beg.

LIABILITIES

Accounts Payable
50,000 Beg.
600,000 1
4 490,000
160,000

EQUITY

Owner's Capital Salaries Expense

550,000 Beg. 5 820,000

Sales Utilities Expense

1,600,000 2 6 64,000

Cost of goods sold

2 560,000
 George Laku
Unadjusted Trial Balance
January 31, 20x1

Accounts Debits Credits

Cash 396,000
Accounts Receivable 170,000
Inventory 180,000
Equipment 300,000
Accumulated Depreciation 180,000
Accounts Payable 160,000
Owner's Capital 550,000
Sales 1,600,000
Cost of goods sold 560,000
Salaries Expense 820,000
Utilities Expense 64,000
Totals 2,490,000 2,490,000
 Date Particulars Acct. No.
Jan. 31, 20x1
Depreciation Expense
Accumulated Depreciation
To record the depreciation expense on equipment for the period.

Bad debts Expense

Allowance for bad debts
To record bad debts expense for the period.
Debit Credit

30,000
30,000

3,000
3,000
 George
Works
January 3

Accounts Unadjusted Trial Balance Adjustments Adjusted Trial Balance

Debit Credit Debit Credit Debit
Cash 396,000 396,000
Accounts Receivable 170,000 170,000
Inventory 180,000 180,000
Equipment 300,000 300,000
Accumulated Depreciation 180,000 30,000
Accounts Payable 160,000
Owner's Capital 550,000
Sales 1,600,000
Cost of goods sold 560,000 560,000
Salaries Expense 820,000 820,000
Utilities Expense 64,000 64,000
Totals 2,490,000 2,490,000
Adjustments:
Depreciation Expense 30,000 30,000
Bad debts Expense 3,000 3,000
Allowance for bad debts 3,000
Totals 33,000 33,000 2,523,000
 George Laku
Worksheet
January 31, 20x1

Adjusted Trial Balance Income Statement Balance Sheet Closing Entries Post-closing Trial Balance
Credit Debit Credit Debit Credit Debit Credit Debit
396,000 396,000
170,000 170,000
180,000 180,000
300,000 300,000
210,000 210,000
160,000 160,000
550,000 550,000 123,000
1,600,000 1,600,000 1,600,000
560,000 560,000
820,000 820,000
64,000 64,000

30,000 30,000
3,000 3,000
3,000 3,000
2,523,000 1,477,000 1,600,000 1,046,000 923,000 1,600,000 1,600,000 1,046,000
123,000 123,000
1,600,000 1,600,000 1,046,000 1,046,000
ost-closing Trial Balance
Credit

210,000
160,000
673,000

3,000
1,046,000
 Date Particulars Acct. No.
Jan. 31, 20x1
Sales
Cost of goods sold
Salaries Expense
Utilities Expense
Depreciation Expense
Bad debts Expense
Income Summary
To close income and expense accounts to income summary.

Income Summary
Owner's Capital
To close the income summary to capital.
Debit Credit

1,600,000
560,000
820,000
64,000
30,000
3,000
123,000

123,000
123,000
 Entity A Entity A
Balance Sheet Income Statement
As of Jan 31, 20x1 January 31, 20x1

ASSETS Sales
Cash 396,000 Cost of good sold
Accounts Receivable 170,000 GROSS PROFIT
Allowance for bad debts -3,000 Salaries Expense
Inventory 180,000 Utilities Expense
Equipment 300,000 Depreciation Expense
Accumulated Depreciation -210,000 Bad debts Expense
TOTAL ASSETS 833,000 PROFIT FOR THE PERIOD

LIABILITIES
Accounts Payable 160,000
TOTAL LIABILITIES 160,000

EQUITY
Owner's Capital 673,000
TOTAL EQUITY 673,000

TOTAL LIABILITIES & EQUITY 833,000

 Entity A
Income Statement
January 31, 20x1

1,600,000
-560,000
1,040,000
-820,000
-64,000
tion Expense -30,000
-3,000
OR THE PERIOD 123,000