Chapter $4$ Homework

Problem $4-1$ OverPriced Jeans, Inc. Revenue and Expense Accounts

This problem is for the month of February for OverPriced Jeans $($OPJ$).$ You will be using the new

Revenue and Expense accounts that you learned about in this chapter to record OPJ'sChapter $4-$ Using Revenue and Expense 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.

Requirement $4$

Prepare a Pre$-$Closing Trial Balance.

Requirement $5$

Prepare an Income Statement for the period February $1$ to February $28,2025.$

Requirement $6$

Calculate the Retained Earnings balance needed for the February $28$ Balance Sheet.

Requirement $7$

Prepare OPJ's Balance Sheet as of February $28,2025.$ February

transactions. Use the Excel workbook Chapter $04$ b $-$ Problem $4-1$ Forms to complete this

problem.

Note: If you have a printer available, printing this page and the

next paqe mav 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 $1$

$($If you previously completed Problem $3-1,$ these are the same February transactions utilized in that problem.$)$

February's transactions and adjusting entry information are shown below. For each item make

the required entry in the General Journal.

$($See the General Ledger tab in the file Chapter $04$ b $-$ Problem $4-1$ Forms 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

$$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 Journal to the General Ledger accounts.