Pc depot

PC DEPOT

SOLUTION 1

1. Proprietor started the business with cash $65,000 and bank loan of $100,000.

2. Rent paid for the period of September $1485.

3. Merchandise inventory was purchased on account $137,500.

4. Furniture and fixtures purchased with cash $15,500.

5. Advertising expense paid by cash $1320.

6. Wages paid $935.

7. Office supplies purchased with cash $1,100.

8. Utilities purchased with cash $275.

SOLUTION 2

Cash a/c

ParticularsRef. No.

Amount ($) Particulars Ref. No.

Amount ($)

To Bank Loan 1 100000 By Rent Expense 2 1485To Proprietor's Capital 1 65000

By furniture and fixtures 4 15500

By advertising expense 5 1320

By wages expense 6 935

By office supplies expense 7 1100

By utilities expense 8 275 By balance c/d 144385 165000 165000To balance b/d 144385

Bank Loan a/c

ParticularsRef. No.

Amount ($) Particulars Ref. No.

Amount ($)

To balance c/d 100000 By cash 1 100000 100000 100000 By balance b/d 100000

Proprietor's Capital a/c

Particulars Ref. No.Amount

($) Particulars Ref. No.Amount

($)To balance c/d 65000 By cash 1 65000 65000 65000 By balance b/d 65000

Rent Expense a/c



($)To cash 2 1485 By balance c/d 1485 1485 1485To P&L A/c 1485

Merchandise Inventory a/c



($)To Accounts Payable 3 137500 By balance c/d 137500 137500 137500To balance b/d 137500

Furniture and Fixtures a/c



($)To cash 4 15500 By balance c/d 15500 15500 15500To balance b/d 15500

Accounts Payable a/c



($)

To balance c/d 137500By Merchandise Inventory 3 137500

137500 137500 By balance b/d 137500

Advertising Expense a/c




Wages Expense a/c




Office Supplies Expense a/c




Utilities Expense a/c




SOLUTION 3

Entry No. Particulars L.F. Debit ($) Credit ($)

16Wages Dr. 440

To Accrued Wages 440

17Prepaid Rent Dr. 1485

To cash 1485

18Insurance (September) Dr. 192.5

Prepaid Insurance Dr. 2117.5

To cash 2310

19Electricity Expense Dr. 226

To Accrued Electricity Bills 226

20Sign Dr. 1760

To Cash 660

To Accounts Payable 1100

Journal


9Cash Dr. 38000

To Sales 38000

10Accounts Receivable Dr. 14850

To Sales 14850

11Cash Dr. 3614

To Accounts Receivable 3614

12Accounts Payable Dr. 96195

To Cash 96195

13Merchandise Inventory Dr. 49940

To Accounts Payable 49940

14Cost of Merchandise Sold Dr. 38140

To Merchandise Inventory 38140

15Wages Dr. 688

To cash 688

LedgerCash A/C



($)

To Sales 9 38000 By Accounts Payable 12 96195

To Accounts Receivable 11 3614 By wages 15 688

By Prepaid Rent 17 1485

By Insurance (September) 18 192.5

By Prepaid Insurance 18 2117.5

By Sign 20 660

Sales A/C



($)

By Cash 9 38000

By Accounts Receivable 10 14850

Accounts Receivable A/C



($)

To Sales 10 14850 By cash 11 3614

Merchandise Inventory A/C



($)

To Accounts Payable 13 49940By Cost of Merchandise Sold 14 38140

Cost of Merchandise Sold A/C



($)

To Merchandise Inventory 14 38140

Accounts Payable A/C



($)

To Cash 12 96195By Merchandise Inventory 13 49940

By Sign 20 1100

Wages Expense A/C



($)

To cash 15 688

To Accrued Wages 16 440

Accrued Wages A/C



($)

By wages 16 440

Prepaid Rent A/C



($)

To Cash 17 1485

Insurance (September) A/C



($)

To Cash 18 192.5

Prepaid Insurance A/C



($)To Cash 18 2117.5

Electricity Expense A/C



($)To Accrued Electricity Bills 19 226

Accrued Electricity Bills A/C



($) By Electricity Expense 19 226

Sign A/C



($)To Cash 20 660 To Accounts Payable 20 1100

SOLUTION 4

• Interest on the loan and depreciation on furniture and fixtures should be considered. This is required so that they are accounted for in the month of September as accrued expenses.

Journal


1Interest expense Dr. 1250

To Accrued interest 1250

4Depreciation on Furniture and Fixtures Dr. 129.17

To Accumulated Depreciation on Furniture and Fixtures 129.17

Ledger

Interest Expense A/C

Particulars Ref. No. Amount ($) Particulars Ref. No. Amount ($)

To Accrued interest 1250 By balance c/d 1250

1250 1250

To P&L a/c 1250

Accrued interest A/C


To balance c/d 1250 By interest expense 1250

1250 1250

By balance b/d 1250

Depreciation on Furniture and Fixtures A/C


To Accumulated Depreciation on Furniture and Fixtures 129.17 By balance c/d 129.17

129.17 129.17

To P&L a/c 129.17

Accumulated Depreciation on Furniture and Fixtures A/C


To balance c/d 129.17 By Depreciation on Furniture and Fixture 129.17

129.17 129.17

By balance b/d 129.17

SOLUTION 5Cash



($)

To Bank Loan 1 100000 By Rent Expense 2 1485

To Proprietor's Capital 1 65000 By furniture and fixtures 4 15500

To Sales 9 38000 By advertising expense 5 1320

To Accounts Receivable 11 3614 By wages expense 6 935

By office supplies expense 7 1100

By utilities expense 8 275

By Accounts Payable 12 96195

By wages 15 688

By Prepaid Rent 17 1485

By Insurance expense (September) 18 192.5

By Prepaid Insurance 18 2117.5

By Sign 20 660

By balance c/d 84661

206614 206614

To balance b/d 84661

Sales A/C



($)

To balance c/d 52850 By Cash 9 38000

By Accounts Receivable 10 14850

52850 52850

By P&L a/c 52850

Ledger

Accounts Receivable A/C



($)

To Sales 10 14850 By cash 11 3614

By balance c/d 11236

14850 14850


Bank Loan a/c



($)

To balance c/d 100000 By cash 1 100000

100000 100000

By balance b/d 100000

Proprietor's Capital



($)

To balance c/d 65000 By cash 1 65000

65000 65000


Rent Expense



($)

To cash 2 1485

1485 By balance c/d 1485

To P&L a/c 1485

Merchandise Inventory



($)

To Accounts Payable 3 137500 By Cost of Merchandise Sold 14 38140

To Accounts Payable 13 49940 By balance c/d 149300

187440 187440


Cost of Merchandise Sold A/C



($)

To Merchandise Inventory 14 38140 By balance c/d 38140

38140 38140

To P&L a/c 38140

Furniture and Fixtures



($)

To cash 4 15500 By balance c/d 15500

15500 15500


Accounts Payable



($)

To Cash 12 96195 By Merchandise Inventory 3 137500

To balance c/d 92345 By Merchandise Inventory 13 49940

By Sign 20 1100

188540 188540


Advertising Expense



($)


1320 1320

To P&L a/c 1320

Wages Expense



($)


To cash 15 688

To Accrued Wages 16 440

2063 2063

To P&L a/c 2063

Accrued Wages A/C



($)

To balance c/d 440 By wages 16 440

440 440

By balance b/d 440

Office Supplies Expense



($)


1100 1100

To P&L a/c 1100

Utilities Expense



($)


275 275

To P&L a/c 275

Prepaid Rent A/C



($)

To Cash 17 1485 By balance c/d 1485

1485 1485

To balance b/d 1485

Insurance Expense (September) A/C

Particulars Ref. No. Amount ($) Particulars Ref. No.Amount

($)

To Cash 18 192.5 By balance c/d 192.5

192.5 192.5

To P&L a/c 192.5

Prepaid Insurance A/C


($)

To Cash 18 2117.5 By balance c/d 2117.5

2117.5 2117.5

To balance b/d 2117.5

Electricity Expense A/C


($)

To Accrued Electricity Bills 19 226 By balance c/d 226

226 226

To P&L a/c 226

Accrued Electricity Bills A/C


($)

To balance c/d 226 By Electricity Expense 19 226

226 226

By balance b/d 226

Sign A/C



($)

To Cash 20 660 By balance c/d 1760

To Accounts Payable 20 1100

1760 1760

To balance b/d 1760

Interest Expense A/C



($)

To Accrued interest 1250 By balance c/d 1250

1250 1250

To P&L a/c 1250

Accrued interest A/C



($)

To balance c/d 1250 By interest expense 1250

1250 1250

By balance b/d 1250

Depreciation on Furniture and Fixtures A/C



($)To Accumulated Depreciation on Furniture and Fixtures 129.17 By balance c/d 129.17 129.17 129.17To P&L a/c 129.17

Accumulated Depreciation on Furniture and Fixtures A/C



($)

To balance c/d 129.17By Depreciation on Furniture and Fixture 129.17

129.17 129.17 By balance b/d 129.17

The new ledger accounts required are Interest expense, Accrued interest, Depreciation on furniture and fixtures and Accumulated Depreciation on Furniture and Fixtures accounts.

TRIAL BALANCE

PC Depot

Trial Balance

Particulars Debit ($) Credit ($)

Cash 84661

Sales 52850

Accounts Receivable 11236

Bank Loan 100000

Proprietor's Capital 65000

Rent Expense 1485

Merchandise Inventory 149300

Cost of Merchandise Sold 38140

Furniture and Fixtures 15500

Accounts Payable 92345

Advertising Expense 1320

Wages Expense 2063

Accrued Wages 440

Office Supplies Expense 1100

Utilities Expense 275

Prepaid Rent 1485

Insurance Expense 192.5

Prepaid Insurance 2117.5

Electricity Expense 226

Accrued Electricity Bills 226

Sign 1760

Interest Expense 1250

Accrued Interest 1250

Depreciation on Furniture and Fixtures 129.17

Accumulated Depreciation on Furniture and Fixtures 129.17

312240.17 312240.2

SOLUTION 6PC Depot

Income statement for the month ended September 30

Particulars Amount ($)

Sales 52850

Rent Expense 1485

Cost of Merchandise Sold 38140

Advertising Expense 1320

Wages Expense 2063

Office supplies expense 1100

Utilities Expense 275

Insurance Expense 192.5

Electricity Expense 226

Interest Expense 1250

Depreciation on Furniture and Fixture 129.17

Net Profit 6669.33

PC Depot

Balance Sheet as on September 30

Liabilities Amount ($) Assets Amount ($)

Bank Loan 100000 Cash 84661

Accounts Payable 92345 Accounts Receivable 11236

Accrued Wages 440 Merchandise Inventory 149300

Accrued Electricity Bills 226 Prepaid Rent 1485

Accrued Interest 1250 Prepaid Insurance 2117.5

Proprietor's Capital 65000 Sign 1760

Add: Net Profit 6669.33 71669.33 Furniture and Fixtures 15500

Less Accumulated Depreciation 129.17 15370.83

265930.33 265930.33

Thank You.

Prepared by,

Group ASukanya T.Nivin VinoiTomin BabyJoseph PhilipDeepu Jacob

Business

Pc depot