1. Post to ledger balances from prior year

2. Prepare journal entries and post all entries to ledger

3.Prepare trial balance

4.Prepare Income Statement

5.Prepare statement of retained earnings

6.Prepare balance sheet

7.Prepare closing entries

8.Prepare statement of cash flow

PROBLEM 1-3 JHJ ATHLETIC SHOE STORE 2013 T-ACCOUNTS WITH BALANCES 325,000 CASH ACCOUNTS RECEIVABLE ALLOWANCE FOR BAD DEBTS SHOE INVENTORY 200,000 50,000 12,000 1,000,000 SUPPLIES PREPAID INSURANCE EQUIPMENT ACCUMLATED DEPRECIATION- EQUIP AUTO ACCUMULATED DEPRECIATION AUTO ACCOUNTS PAYABLE WAGES PAYABLE UNEARNED REVENUE 500,000 100,000 40,000 80,000 40,000 90,000 2,500,000 1,000,000 NOTE PAYABLE JHJ COMMON STOCK RETAINED EARNINGS JHJ DIVIDENDS SHOE SALES SHOE SALE RETURNS COST OF GOODS SOLD PURCHASE RETURNS FREIGHT IN RENT EXPENSE-SELLING SUPPLIES EXPENSE-SELLING INSURANCE EXPENSE ADMINISTRATIVE DEPRECIATION EXPENSE- ADMINISTRATIVE SALES SALARIES BAD DEBT EXPENSE INTEREST EXPENSE JOURNALIZEFOLLOVNGTRANSACTIONS 1. INVESTED ADDITIONAL $400,000 IN BUSINESS IN COMMON STOCK 2. PAID S60,000 FOR SUPPLIES 3. PURCHASED 100,000 PAIRS OF SHOES ON MAY 1 ON ACCOUNT FOR $30 EACHH 4. CASH SALES 120,000 PAIRS OF SHOES FOR $50 EACH 5. PAID SALARIES FOR S 3,000,000 6. PURCHASED ON JULY IST, 200,000 PAIRS OF SHOES FOR S40 EACH 7. SOLD ON ACCOUNT ON AUGUST IST, 150,000 PAIRS OF SHOES AT s 60 EACH 8. PAID DIVIDENDS $ 500,000 9 COLLECTIONS ON ACCOUNTS RECEIVABLE $4,000,000 10. WRITE-OFF OF UNCLLLECTBLE ACCOUNTS $200,000 11. CASH SALES 30,000 PAIRS OF SHOES AT S70 EACH 12. PAID S20,000 ON NOTE PLUS S 10,00INTEREST 113 Page $20,000 14. PREPAID INSURANCE IS A ONE YEAR POLICY PURCHASED ON 15. EQUIPMENT IS DEPRECIATED UTILIZING STRAIGHTLINE M 13. ENDING SUPPLIES ON HAND AND HAS 10 YEAR LIFE 16. AUTO IS NOW 2 YEARS OLD AND IS DEPRECIATED UTILIZING DOUBLE-DECLINING BALANCE WITH 5 YEAR LIFE 17. BAD DEBT EXPENSE IS ESTIMATED TO BE 10% OF CREDIT SALES 18. THE COMPANY UTILIZES WEIGHTED AVERAGE METHOD IN CALCULATING PERPETUAL INVENTORIES AND BEGINNING INVENTORIES CONSISTED OF: 50,000 PAIRS OF SHOES AT $20 EACH 40,000 PAIRS OF SHOES AT $25 EACH REQUIRED 1. POST TO LEDGER BALANCES FROM PRIOR YEAR 2. PREPARE JOURNAL ENTRIES AND POST ALL ENTRIES TO LEDGER 3. PREPARE TRIAL BALANCE 4. PREPARE INCOME STATEMENT 5. PREPARE STATEMENT OF RETAINED EARNINGS 6. PREPARE BALANCE SHEET 7. PREPARE CLOSING ENTRIES 8. PREPARE INVENTORY CHART 9. PREPARE STATEMENT OF CASH FLOW