AM" COMP Autosave OFF A -- CHAPTER 03 a - Retained Earnings Saved Home Insert Draw Design Layout References Mailings Review View Tell me Share Comments X [G Arial v 12 ~ A Aav AEE21 B v I U ab X, X AOA == Aalbcdef Aalbcdef AaBbCcDd AaBbCcDd AaRbCcDd AaBaDdee Normal No Sparing Handling 1 Hanting ? Heading Pagic Dictate Sensitivity Editor Styles Pane Chapter 3 - Transactions Affecting Retained Earnings SOLID FOOTING 33 Chapter 3 Homework Problem 3-1 OverPriced Jeans, Inc. Rips-Off Its First Customers This problem will utilize the Over Priced Jeans company (OPJ) from Problem 2-1. Use the Excel workbook Chapter 03 b - Problem 3-1 Forms to complete this problem. Note: If you have a printer available, printing this page may make it easier to complete this problem. Notice that the beginning balances have been put into the General Ledger accounts. These beginning account balances were the January ending account balances from Problem 2-1. Requirement 1 For each of the following transactions make the required entries in the General Journal: (See the General Ledger tab in the workbook Chapter 03 b - Problem 3-1 Forms for the accounts in OPJ's Faccounting 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 $16,000 - customer paid cash which was deposited in Big Bank. 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 selling price $88,000 - cost of inventory sold $22,000 - customer will pay in the future. Feb 18 Sale of inventory to a customer selling price $110,000 - cost of inventory sold $28,000 - customer pays $40,000 cash which is deposited in Little Bank - customer English (United States) Focus E EES Page 9 of 10 9 of 4056 words DE *74% AM" GO AutoSave OFF A to -- CHAPTER 03 a - Retained Earnings Saved Home Insert Draw Design Layout References Mailings Review View Tell me Share Comments X [G v 21 1 Arial v 12 ~ A Aav A B ! | v do x x IUX ADA Aalbcdef Aalbcdef AaBbCcDd AaBbCcDd AaBhCcDd Aabade Now No Sparing Henning 1 Hacing Headings Pagic Dictate Styles Pane Sensitivity Editor Feb 04 Sale of inventory to a customer selling price $62,000 - cost of inventory sold $16,000 - customer paid cash which was deposited in Big Bank. 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 - selling price $88,000 - cost of inventory sold $22,000 - customer will pay in the future. Feb 18 Sale of inventory to a customer - selling price $110,000 - cost of inventory sold $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 Take $23,000 cash out of Little Bank to pay employees for wages they have earned. Feb 28 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. Feb 28 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. Requirement 2 Post the entries from the General Joumal to the General Ledger accounts. Requirement 3 Compute an ending balance for each General Ledger account. Requirement 4 Prepare a Trial Balance. Requirement 5 Prepare the "What Caused the Change in Retained Earnings report. Requirement 6 Prepare OPJ's Balance Sheet as of February 28, 2021. English (United States) Focus E ES Page 9 of 10 9 of 4056 words *74% AutoSave OFF AOE Chapter 03 b - Problem 3-1 Forms.xls - Compatibility Mode Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments w 5 X LG ~ A A Wran Text Insert v Delete Ayo Pastc B BIU 1 Merge & Center $ % GB Conditional Format Cell Formatting as Table Styles Sort v Filter Find & Select Analyze Data Sensitvity Format v y C2 x T Name: Section N: Problem 3-1 - OverPriced Jeans, Inc. Rips-Off Its First Customers Assets: Liabilities: Equity A General Journal General Ledger Trial Bal and RE Change Rpl Balance Sheet + Ready + 100% AutoSave OFF A @@" Chapter 03 b - Problem 3-1 Forms.xls - Compatibility Mode Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments 9 w X LG - AP A Wran Text Insert v Delete Ayo v Paste BIU 1 Merge & Center $ % GB Conditional Format Cell Formatting as Table Styles Sort v Filter Find & Select Analyze Data Sensitvity Format v y C2 X T Problem 3-1 -- OverPriced Jeans, Inc. Rips-Off Its First Customers - Trial Balance Deil, Credi. Account Name Cash - Big Bank Cash - Little Bank Accounts Receivable Inventory Equipment Nole Payable - Bla Bark Note Payable - Little Bank Interest Payable - Hig Bank Interest Payable Little Bank Common Stock Retained Eamingo Total What Caused the Change in Retained Earnings during the Period Feb 1 to Feb. 28, 2021 Sale af Inventory to me Less Cost of Inventory Sold to Customers Assets Consumed for Rent Assets Consumed for Wages Increase in Big & Little Banks Cameo Assets for interest Increase in the Owners Claim to the Asset during February A General Journal General Ledger Trial Bal and RE Change Rpl A Balance Sheet + Ready + 100% AutoSave OFF AOE Chapter 03 b - Problem 3-1 Forms.xls - Compatibility Mode Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments Y Insert v 2 Wran Text ~ A A 5 X [G Delete Paste B BIU 1 A Merge & Center GB Conditional Format Cell Formatting as Table Styles Sort Filter Sensitvity Format v Ov Find & Select Analyze Data C2 + x fx T Dr. Or. Dr. Stock Bo Bank 95,000 Big Bank Cr 65,000 Beg. Balance Beg. Balance Bc Bug Bulance 75.000 Ending Ralanca Ending Balance Ending Balance Nole Payabl Dr. Little Bank Cr. . 60,000 Beg. Dalance D- Retained Enringe C O Beg Balance Dr. Lite Dank Cr. 20.000 Bey, Barce Ending Balance Ending Balance Dr. Interest Payable BinBank Cr 0 Beg Balance Acmounta Robe able 0 Cr. Ending Balanca Bey. Barca Interest Payable Dr. Little Bank Cr. 0 Ending Balance Beg. Balance Endng Balance Ending Balance Dr. Inventory C. 25,000 Beg. Bence Ending Balance Dr. Eggert 60.000 Beg. Balance Ending Relance A General Journal General Ledger A Trial Bal and RE Change Rpl Balance Sheel + Ready + % 100% AutoSave OFF A @@" Chapter 03 b - Problem 3-1 Forms.xls - Compatibility Mode Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments w X [G ~ A A Wran Text Insert v Delete Ayo Paste B Merge & Center $ % GB Conditional Format Cell Formatting as Table Styles Sort v Filter Find & Select Analyze Data Sensitvity Format v y C2 2x + x T Name: Section: #1 Problem 3-1 - Overpriced Jeans, Inc. Rips-Off its First Customers General Journal Date Account Debit Credit General Journal A General Ledger A Trial Bal and RE Change Rpl Balance Sheel + Ready ### + 100% AM" COMP Autosave OFF A -- CHAPTER 03 a - Retained Earnings Saved Home Insert Draw Design Layout References Mailings Review View Tell me Share Comments X [G Arial v 12 ~ A Aav AEE21 B v I U ab X, X AOA == Aalbcdef Aalbcdef AaBbCcDd AaBbCcDd AaRbCcDd AaBaDdee Normal No Sparing Handling 1 Hanting ? Heading Pagic Dictate Sensitivity Editor Styles Pane Chapter 3 - Transactions Affecting Retained Earnings SOLID FOOTING 33 Chapter 3 Homework Problem 3-1 OverPriced Jeans, Inc. Rips-Off Its First Customers This problem will utilize the Over Priced Jeans company (OPJ) from Problem 2-1. Use the Excel workbook Chapter 03 b - Problem 3-1 Forms to complete this problem. Note: If you have a printer available, printing this page may make it easier to complete this problem. Notice that the beginning balances have been put into the General Ledger accounts. These beginning account balances were the January ending account balances from Problem 2-1. Requirement 1 For each of the following transactions make the required entries in the General Journal: (See the General Ledger tab in the workbook Chapter 03 b - Problem 3-1 Forms for the accounts in OPJ's Faccounting 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 $16,000 - customer paid cash which was deposited in Big Bank. 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 selling price $88,000 - cost of inventory sold $22,000 - customer will pay in the future. Feb 18 Sale of inventory to a customer selling price $110,000 - cost of inventory sold $28,000 - customer pays $40,000 cash which is deposited in Little Bank - customer English (United States) Focus E EES Page 9 of 10 9 of 4056 words DE *74% AM" GO AutoSave OFF A to -- CHAPTER 03 a - Retained Earnings Saved Home Insert Draw Design Layout References Mailings Review View Tell me Share Comments X [G v 21 1 Arial v 12 ~ A Aav A B ! | v do x x IUX ADA Aalbcdef Aalbcdef AaBbCcDd AaBbCcDd AaBhCcDd Aabade Now No Sparing Henning 1 Hacing Headings Pagic Dictate Styles Pane Sensitivity Editor Feb 04 Sale of inventory to a customer selling price $62,000 - cost of inventory sold $16,000 - customer paid cash which was deposited in Big Bank. 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 - selling price $88,000 - cost of inventory sold $22,000 - customer will pay in the future. Feb 18 Sale of inventory to a customer - selling price $110,000 - cost of inventory sold $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 Take $23,000 cash out of Little Bank to pay employees for wages they have earned. Feb 28 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. Feb 28 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. Requirement 2 Post the entries from the General Joumal to the General Ledger accounts. Requirement 3 Compute an ending balance for each General Ledger account. Requirement 4 Prepare a Trial Balance. Requirement 5 Prepare the "What Caused the Change in Retained Earnings report. Requirement 6 Prepare OPJ's Balance Sheet as of February 28, 2021. English (United States) Focus E ES Page 9 of 10 9 of 4056 words *74% AutoSave OFF AOE Chapter 03 b - Problem 3-1 Forms.xls - Compatibility Mode Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments w 5 X LG ~ A A Wran Text Insert v Delete Ayo Pastc B BIU 1 Merge & Center $ % GB Conditional Format Cell Formatting as Table Styles Sort v Filter Find & Select Analyze Data Sensitvity Format v y C2 x T Name: Section N: Problem 3-1 - OverPriced Jeans, Inc. Rips-Off Its First Customers Assets: Liabilities: Equity A General Journal General Ledger Trial Bal and RE Change Rpl Balance Sheet + Ready + 100% AutoSave OFF A @@" Chapter 03 b - Problem 3-1 Forms.xls - Compatibility Mode Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments 9 w X LG - AP A Wran Text Insert v Delete Ayo v Paste BIU 1 Merge & Center $ % GB Conditional Format Cell Formatting as Table Styles Sort v Filter Find & Select Analyze Data Sensitvity Format v y C2 X T Problem 3-1 -- OverPriced Jeans, Inc. Rips-Off Its First Customers - Trial Balance Deil, Credi. Account Name Cash - Big Bank Cash - Little Bank Accounts Receivable Inventory Equipment Nole Payable - Bla Bark Note Payable - Little Bank Interest Payable - Hig Bank Interest Payable Little Bank Common Stock Retained Eamingo Total What Caused the Change in Retained Earnings during the Period Feb 1 to Feb. 28, 2021 Sale af Inventory to me Less Cost of Inventory Sold to Customers Assets Consumed for Rent Assets Consumed for Wages Increase in Big & Little Banks Cameo Assets for interest Increase in the Owners Claim to the Asset during February A General Journal General Ledger Trial Bal and RE Change Rpl A Balance Sheet + Ready + 100% AutoSave OFF AOE Chapter 03 b - Problem 3-1 Forms.xls - Compatibility Mode Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments Y Insert v 2 Wran Text ~ A A 5 X [G Delete Paste B BIU 1 A Merge & Center GB Conditional Format Cell Formatting as Table Styles Sort Filter Sensitvity Format v Ov Find & Select Analyze Data C2 + x fx T Dr. Or. Dr. Stock Bo Bank 95,000 Big Bank Cr 65,000 Beg. Balance Beg. Balance Bc Bug Bulance 75.000 Ending Ralanca Ending Balance Ending Balance Nole Payabl Dr. Little Bank Cr. . 60,000 Beg. Dalance D- Retained Enringe C O Beg Balance Dr. Lite Dank Cr. 20.000 Bey, Barce Ending Balance Ending Balance Dr. Interest Payable BinBank Cr 0 Beg Balance Acmounta Robe able 0 Cr. Ending Balanca Bey. Barca Interest Payable Dr. Little Bank Cr. 0 Ending Balance Beg. Balance Endng Balance Ending Balance Dr. Inventory C. 25,000 Beg. Bence Ending Balance Dr. Eggert 60.000 Beg. Balance Ending Relance A General Journal General Ledger A Trial Bal and RE Change Rpl Balance Sheel + Ready + % 100% AutoSave OFF A @@" Chapter 03 b - Problem 3-1 Forms.xls - Compatibility Mode Home Insert Draw Page Layout Formulas Data Review View Tell me Share Comments w X [G ~ A A Wran Text Insert v Delete Ayo Paste B Merge & Center $ % GB Conditional Format Cell Formatting as Table Styles Sort v Filter Find & Select Analyze Data Sensitvity Format v y C2 2x + x T Name: Section: #1 Problem 3-1 - Overpriced Jeans, Inc. Rips-Off its First Customers General Journal Date Account Debit Credit General Journal A General Ledger A Trial Bal and RE Change Rpl Balance Sheel + Ready ### + 100%