Chapter 3 Homework Problem 3-1 OverPriced Jeans, Inc. Rips-Off Its First Customers This problem will utilize the OverPriced Jeans company (OPJ) from Problem 2-1. Use the forms in the Excel file Problem 3-1 Forms 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 file Problem 3-1 Forms for the accounts in OPJ's accounting system.) Take $4,000 cash out of Big Bank to pay for February's warehouse rent. Feb 01 Feb 04 Feb 07 Feb 15 Feb 18 Feb 22 Feb 27 Feb 28 Feb 28 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. Take $10,000 cash out of Little Bank to pay employees for wages they have earned. Sale of inventory to a customer-selling price $88,000-cost of inventory sold $22,000-customer will pay in the future. 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. Purchase additional inventory-pay $17,000 cash out of Big Bank for the inventory. 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. Requirement 2 Post the entries from the General Journal 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.