CHAPTER
General Accounting and
End–of–Period Procedures:
Merchandising Business
7
Your Name’s
Sierra Sports
7
Account Type Balance Total
1100 ꞏ Checking Bank 32,585.43
1200 ꞏ Accounts Receivable
A
ccounts Receivable 6,571.50
1520 ꞏ Store Fixtures Fixed Asset 4,500.00
1521 ꞏ Original Cost Fixed Asset 4,500.00
1522 ꞏ Depreciation Fixed Asset 0.00
2000 ꞏ Accounts Payable
A
ccounts Payable 9,395.40
2100 ꞏ Visa Credit Card 1,221.98
2200 ꞏ Sales Tax Payable Other Current Liability 0.00
2510 ꞏ Office Equipment Loan Long Term Liability 3,000.00
2520 ꞏ Store Fixtures Loan Long Term Liability 2,500.00
6110 ꞏ Automobile Expense Expense
6120 ꞏ Bank Service Charges Expense
6140 ꞏ Advertising Expense Expense
6150 ꞏ Depreciation Expense Expense
6160 ꞏ Dues and Subscriptions Expense
6170 ꞏ Equipment Rental Expense
6180 ꞏ Insurance Expense
6181 ꞏ Liability Insurance Expense
6182 ꞏ Disability Insurance Expense
6210 ꞏ Interest Expense Expense
6211 ꞏ Finance Charge Expense
6212 ꞏ Loan Interest Expense
Chapter 7, Document 1
Copyright © 2019 Pearson Education, Inc. All Rights Reserved
Y
our Name’s Sierra Sports
Account Listing
January 31, 2018
Page 1 of 41
Account Type Balance Total
6521 ꞏ Federal Expense
6522 ꞏ Local Expense
Y
our Name’s Sierra Sports
Account Listing
January 31, 2018
Chapter 7, Document 1
Copyright © 2019 Pearson Education, Inc. All Rights Reserved
Page 2 of 41
Item FAM Numbe
r
Purchase Date Purchase Description Account Cost
Y
our Name’s Sierra Sports
Fixed Asset Listing
January 31, 2018
Chapter 7, Document 2
Copyright © 2019 Pearson Education, Inc. All Rights Reserved
Page 3 of 41
1/31/2018
Owner Withdrawal, January
Your Name’s Sierra Sports
875 Mountain Road
Mammoth Lakes, CA 93546
1/31/2018
Owner Withdrawal, January
Your Name’s Sierra Sports
875 Mountain Road
Mammoth Lakes, CA 93546
Chapter 7, Document 3
Copyright © 2019 Pearson Education, Inc. All Rights Reserved
Page 4 of 41
Type Date Num Name Cl
r
Amount Balance
Beginning Balance 25,943.00
Cleared Transactions
Checks and Payments – 10 items
General Journal 01/15/2018 Ortiz, Oska
r
X -975.00 -975.00
Check 01/15/2018 1 Medina, Diego Dr. X -81.00 -1,056.00
Deposits and Credits – 2 items
Deposit 01/14/2018 X 10,855.30 10,855.30
Cleared Balance 6,571.61 32,514.61
Uncleared Transactions
Checks and Payments – 2 items
Y
our Name’s Sierra Sports
Reconciliation Detail
1100 ꞏ Checking, Period Ending 01/31/2018
Chapter 7, Document 4
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Page 5 of 41
r
Type Date Num Name Cl
r
Amount Balance
Beginning Balance 150.00
Cleared Transactions
Charges and Cash Advances – 4 items
Y
our Name’s Sierra Sports
Reconciliation Detail
2100 ꞏ Visa, Period Ending 01/31/2018
Chapter 7, Document 5
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Page 6 of 41
1/31/2018
January Visa Payment
Your Name’s Sierra Sports
875 Mountain Road
Mammoth Lakes, CA 93546
Chapter 7, Document 6
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Page 7 of 41
Trans # Type Date Num Adj Name Memo Account Debit Credit
48 Invoice 01/02/2018 1
A
sher, Benjamin VOID: 1200 ꞏ Accounts Receivable 0.00
A
sher, Benjamin
A
fter Ski Boots and Shoes 4011 ꞏ Clothing & Accessory Sales 0.00
State Board of Equalization CA Sales Tax 2200 ꞏ Sales Tax Payable 74.00
Medina, Diego Dr. Ski Boots 4012 ꞏ Equipment Sales 250.00
Medina, Diego Dr. Ski Boots 1120 ꞏ Inventory Asset 75.00
Mountain Schools Ski Bindings 4012 ꞏ Equipment Sales 500.00
Mountain Schools Ski Bindings 1120 ꞏ Inventory Asset 375.00
Mountain Schools Ski Bindings 5000 ꞏ Cost of Goods Sold 375.00
Mountain Schools Ski Poles 4012 ꞏ Equipment Sales 145.00
Mountain Schools Ski Poles 1120 ꞏ Inventory Asset 150.00
Chapter 7, Document 7
Copyright © 2019 Pearson Education, Inc. All Rights Reserved
Your Name’s Sierra Sports
Journal
January 2018
Page 8 of 41
A
A
A
A
Trans # Type Date Num Adj Name Memo Account Debit Credit
Grant, Helen Gloves 5000 ꞏ Cost of Goods Sold 15.00
Grant, Helen Ski and Snowboard Socks 4011 ꞏ Clothing & Accessory Sales 15.95
55 Invoice 01/04/2018 6
A
sher, Benjamin 1200 ꞏ Accounts Receivable 852.11
A
sher, Benjamin Snow Skis 4012 ꞏ Equipment Sales 599.00
A
A
A
A
A
A
A
A
56 Invoice 01/04/2018 7 Waters, Angie 1200 ꞏ Accounts Receivable 1,035.60
Waters, Angie Snowboard 4012 ꞏ Equipment Sales 499.95
Waters, Angie Snowboard 1120 ꞏ Inventory Asset 100.00
Waters, Angie Snowboard 5000 ꞏ Cost of Goods Sold 100.00
Waters, Angie Snowboard Bindings 4012 ꞏ Equipment Sales 159.99
Your Name’s Sierra Sports
Journal
January 2018
Chapter 7, Document 7
Copyright © 2019 Pearson Education, Inc. All Rights Reserved
Page 9 of 41
Trans # Type Date Num Adj Name Memo Account Debit Credit
61 Credit Memo 01/10/2018 9 Waters, Angie 1200 ꞏ Accounts Receivable 53.95
Waters, Angie Sunglasses, Ski Wax, Sunscreen, Ski Holders,… 4011 ꞏ Clothing & Accessory Sales 49.95
Waters, Angie Sunglasses, Ski Wax, Sunscreen, Ski Holders,… 1120 ꞏ Inventory Asset 3.66
63 Sales Receipt 01/08/2018 1 Cash Custome
r
12000 ꞏ Undeposited Funds 36.86
Cash Custome
r
Sunglasses, Ski Wax, Sunscreen, Ski Holders,… 4011 ꞏ Clothing & Accessory Sales 29.95
Cash Custome
r
Sunglasses, Ski Wax, Sunscreen, Ski Holders,… 1120 ꞏ Inventory Asset 3.66
Cash Custome
r
Sunglasses, Ski Wax, Sunscreen, Ski Holders,… 5000 ꞏ Cost of Goods Sold 3.66
Cash Custome
r
Sunglasses, Ski Wax, Sunscreen, Ski Holders,… 4011 ꞏ Clothing & Accessory Sales 2.99
r
r
r
r
r
r
r
Chapter 7, Document 7
Copyright © 2019 Pearson Education, Inc. All Rights Reserved
Your Name’s Sierra Sports
Journal
January 2018
Page 10 of 41
Trans # Type Date Num Adj Name Memo Account Debit Credit
65 Sales Receipt 01/11/2018 3 Cash Custome
r
12000 ꞏ Undeposited Funds 34.54
Cash Custome
r
Ski and Snowboard Socks 4011 ꞏ Clothing & Accessory Sales 31.98
67 Sales Receipt 01/12/2018 5 Cash Custome
r
12000 ꞏ Undeposited Funds 410.29
Cash Custome
r
Parkas and Jackets 4011 ꞏ Clothing & Accessory Sales 249.95
Cash Custome
r
Parkas and Jackets 1120 ꞏ Inventory Asset 58.33
Cash Custome
r
Parkas and Jackets 5000 ꞏ Cost of Goods Sold 58.33
Cash Custome
r
Ski Pants 4011 ꞏ Clothing & Accessory Sales 129.95
Cash Custome
r
Ski Pants 1120 ꞏ Inventory Asset 30.00
Cash Custome
r
Ski Pants 5000 ꞏ Cost of Goods Sold 30.00
r
r
r
r
r
r
r
r
r
r
r
70 Sales Receipt 01/12/2018 8 Cash Custome
r
12000 ꞏ Undeposited Funds 248.35
Cash Custome
r
Snowboard Boots 4012 ꞏ Equipment Sales 229.95
r
r
Chapter 7, Document 7
Copyright © 2019 Pearson Education, Inc. All Rights Reserved
Your Name’s Sierra Sports
Journal
January 2018
Page 11 of 41
r
r
r
r
r
r
Trans # Type Date Num Adj Name Memo Account Debit Credit
72 Payment 01/13/2018 Waters, Angie 12000 ꞏ Undeposited Funds 1,035.22
Waters, Angie 1200 ꞏ Accounts Receivable 1,035.22
1,035.22 1,035.22
75 Payment 01/13/2018 152
A
sher, Benjamin Includes Early Payment Discount 12000 ꞏ Undeposited Funds 916.84
A
sher, Benjamin Includes Early Payment Discount 1200 ꞏ Accounts Receivable 916.84
A
sher, Benjamin Includes Early Payment Discount 1200 ꞏ Accounts Receivable 8.40
A
sher, Benjamin Includes Early Payment Discount 4050 ꞏ Sales Discounts 8.40
78 Payment 01/14/2018 Grant, Helen 12000 ꞏ Undeposited Funds 408.48
Grant, Helen 1200 ꞏ Accounts Receivable 408.48
Chapter 7, Document 7
Copyright © 2019 Pearson Education, Inc. All Rights Reserved
Your Name’s Sierra Sports
Journal
January 2018
Page 12 of 41
Trans # Type Date Num Adj Name Memo Account Debit Credit
Mountain Schools Includes Early Payment Discount 12000 ꞏ Undeposited Funds 2,038.48
Ortiz, Oskar Bounced Check# 765 4090 ꞏ Returned Check Charges 25.00
State Board of Equalization CA Sales Tax 2200 ꞏ Sales Tax Payable 0.00
25.00 25.00
84 Credit Memo 01/15/2018 12 Medina, Diego Dr. 1200 ꞏ Accounts Receivable 81.00
Medina, Diego Dr. Ski Poles 4012 ꞏ Equipment Sales 75.00
Medina, Diego Dr. Ski Poles 1120 ꞏ Inventory Asset 30.00
Medina, Diego Dr. Ski Poles 5000 ꞏ Cost of Goods Sold 30.00
Your Name’s Sierra Sports
Journal
January 2018
Chapter 7, Document 7
Copyright © 2019 Pearson Education, Inc. All Rights Reserved
Page 13 of 41
Trans # Type Date Num Adj Name Memo Account Debit Credit
94 Credit Card Charge 01/21/2018 Mountain Office Supply Purchase Pape
r
2100 ꞏ Visa 21.98
Mountain Office Supply Purchase Pape
r
1311 ꞏ Office Supplies 21.98
21.98 21.98
97 Bill 01/25/2018 3510-1023 Sierra Power Co. 2000 ꞏ Accounts Payable 359.00
Sierra Power Co. 6391 ꞏ Gas and Electric 359.00
359.00 359.00
101 Bill Pmt -Check 01/25/2018 2 Footwear Galore 1100 ꞏ Checking 1,837.50
Footwear Galore 2000 ꞏ Accounts Payable 1,837.50
Footwear Galore 2000 ꞏ Accounts Payable 37.50
Footwear Galore 5200 ꞏ Merchandise Discounts 37.50
Chapter 7, Document 7
Copyright © 2019 Pearson Education, Inc. All Rights Reserved
Your Name’s Sierra Sports
Journal
January 2018
Page 14 of 41
Trans # Type Date Num Adj Name Memo Account Debit Credit
105 Bill Pmt -CCard 01/25/2018 Sports Accessories Opening balance 2100 ꞏ Visa 350.00
Sports Accessories Opening balance 2000 ꞏ Accounts Payable 350.00
350.00 350.00
108 General Journal 01/31/2018 *
A
djusting Entry, Office Supplies 6472 ꞏ Office 350.00
*
A
djusting Entry, Office Supplies 1311 ꞏ Office Supplies 350.00
350.00 350.00
109 General Journal 01/31/2018 *
A
djusting Entry, Sales Supplies 6471 ꞏ Sales 175.00
*
A
djusting Entry, Sales Supplies 1312 ꞏ Sales Supplies 175.00
175.00 175.00
A
A
A
112 Check 01/31/2018 7 Larry, Mui
r
Owner Withdrawal, January 1100 ꞏ Checking 1,000.00
Larry, Mui
r
Owner Withdrawal, January 3122 ꞏ Larry Muir, Drawing 1,000.00
1,000.00 1,000.00
Chapter 7, Document 7
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Your Name’s Sierra Sports
Journal
January 2018
Page 15 of 41
A
A
Trans # Type Date Num Adj Name Memo Account Debit Credit
116 Deposit 01/31/2018 Interest 1100 ꞏ Checking 54.05
Interest 7010 ꞏ Interest Income 54.05
54.05 54.05
121 General Journal 01/31/2018 Close Drawing 3110 ꞏ First and Last Name, Capital 1,000.00
Close Drawing 3112 ꞏ First and Last Name, Drawing 1,000.00
1,000.00 1,000.00
Your Name’s Sierra Sports
Journal
January 2018
Chapter 7, Document 7
Copyright © 2019 Pearson Education, Inc. All Rights Reserved
Page 16 of 41
Jan 31, 18
Debit Credit
1100 ꞏ Checking 29,292.63
2000 ꞏ Accounts Payable 9,395.40
2100 ꞏ Visa 0.00
2200 ꞏ Sales Tax Payable 0.00
2510 ꞏ Office Equipment Loan 2,989.67
4050 ꞏ Sales Discounts 494.36
4090 ꞏ Returned Check Charges 25.00
5000 ꞏ Cost of Goods Sold 3,492.46
Y
our Name’s Sierra Sports
Trial Balance
As of January 31, 2018
Chapter 7, Document 8
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Page 17 of 41
Jan 18
Ordinary Income/Expense
Income
Cost of Goods Sold
5000 ꞏ Cost of Goods Sold
5200 ꞏ Merchandise Discounts -49.90
6180 ꞏ Insurance
6181 ꞏ Liability Insurance 125.00
Total 6180 ꞏ Insurance 125.00
6190 ꞏ Merchandise Adjustments 16.00
6210 ꞏ Interest Expense
6212 ꞏ Loan Interest 97.93
6470 ꞏ Supplies Expense
6471 ꞏ Sales 175.00
6472 ꞏ Office 350.00
Y
our Name’s Sierra Sports
Profit & Loss
January 2018
Chapter 7, Document 9
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Page 18 of 41