44 SOLID FOOTING Chapter 4-Using Revenue and Expense Accounts Chapter 4 Homework Problem 4-1 OverPriced Jeans, Inc. Revenue and Expense Accounts This problem is for the month of F rge and Remvee ebruary for OverPriced Jeans (OPJ). You will be using the new this chapter to record OPJ's February Revenue and Expense accounts that you learned about in ransacti the boginning balances have been account balances were the January ending account balances from Problem 2 ons. Remove and use the forms on Pgs 203 to 206 to complete this problem. Notice that put into the General Ledger accounts. These beginning -1. Requirement 1 If you previously completed Problen 3-1, these are the same February transactions adjusting entry information are shown bellow. For each item make February's transactions and the required entry in the General Journal. See the General Ledger on Pg 205 for the accounts in OPJ's accounting system.) Feb 01 Take $4,000 cash out of Big Bank to pay for February's warehouse rent. Feb 04 Sale of inventory to a customer - selling price $62,000-cost of inventory sold Feb 07 Take $10,000 cash out of Little Bank to pay employees for wages they have earned Feb 15 Sale of inventory to a customer-seling price $88,000- cost of inventory sold Feb 18 Sale of inventory to a customer -selling price $110,000-cost of inventory sold $16,000 -customer paid cash which was deposited in Big Bank. $22,000-customer will pay in the future. $28,000 -customer pays $40,000 cash which is deposited in Little Bank- customer will pay for the remaining amount of the sale in 30 days. Feb 22 Purchase additional inventory-pay $17,000 cash out of Big Bank for the inventory Feb 27 Feb 28 Take $23,000 cash out of Little Bank to pay employees for wages they have earned. Adjust the Interest Payable-Big Bank account to record the $600 of interest owed to Big Bank for February- interest will be paid in June. Adjust the Interest Payable-Little Bank account to record the $450 of interest owed to Little Bank for February- interest will be paid in March. Feb 28 Requirement 2 Post the entries from the General Journal to the General Ledger accounts. Requirement 3 Except for Retained Earnings, compute an ending balance for each General Ledger account. For Retained Earnings, place the current balance in the account. Prepare a Pre-Closing Trial Balance. Prepare an Income Statement for the period February 1 to February 28, 2017. Requirement4 Requirement5