Chapter 6 - OPJ Mini Project Solid Footing 14e

March 2021 Transactions Date Description of the Transaction March 1 Owners of OPJ invested an additional $55,000 cash into the business. The cash is put into Big Bank. (As an example of how to journalize and post a transaction -- this transaction has already been entered into the General Journal and posted to the General Ledger.) March 1 Pay off the $60,000 Note Payable owed to Little Bank. The cash to pay off the note is taken out of Big Bank. Also pay to Little Bank 5450 for interest owed on the Note Payable for February. The $450 cash is also taken out of Big Bank. March 1 Take $4,900 cash out of Big Bank to pay for March's rent. March 2 The customer that purchased on credit on February 15 pays $88,000 cash to pay off the amount due. The cash is deposited into Big Bank. March 10 Sale of inventory to a customer -- selling price $72,750 -- cost of the inventory sold $23,000. The customer pays cash. The cash is deposited into Little Bank. March 15 Take $26,000 cash out of Little Bank to pay employees for wages they have earned. March 16 Purchase $77,750 of additional inventory. OPJ will pay the manufacturer 50% of the $77,750 in 10 days. OPJ will pay the remaining 50% in 30 days. March 17 Sale of inventory to a customer -- selling price $114,000 -- cost of the inventory sold $33,000. The customer will pay for the purchase in 30 days. March 20 Sale of inventory to a customer -- selling price $165,500 -- cost of the inventory sold $41,750. The customer pays $35,500 cash that is deposited into Little Bank. The customer will pay the remaining amount in 30 days. March 22 Purchase inventory for $42,000 cash. The cash is taken out of Big Bank. March 26 Pay the manufacturer the 50% due on the March 16th purchase of inventory. The cash is taken out of Big Bank March 30 Take $29,500 cash out of Little Bank to pay employees for wages they have earned. Additional Information Note Payable Big Bank: Interest due to Big Bank on the Note Payable for the month of March is $980. As of March 31 OPJ owes Big Bank a total of $1,580 for interest (5600 for February + $980 for March). Interest will be paid to Big Bank in June. OverPriced Jeans, Inc. - Chart of Accounts Account # Account Name Assets: 100 Cash - Big Bank 105 Cash - Little Bank 110 Accounts Receivable 120 Inventory 150 Equipment 200 210 215 220 225 Liabilities: Accounts Payable Note Payable - Big Bank Note Payable - Little Bank Interest Payable - Big Bank Interest Payable - Little Bank 300 305 Equity: Common Stock Retained Earnings Revenues: Sales Revenue 400 500 510 515 520 Expenses: Cost of Goods Sold Rent Expense Wages Expense Interest Expense OverPriced Jeans, Inc. - General Journal Page # 1 Posted Debit Credit 2021 Account Account Name Month-Day Number 100 Cash - Big Bank 300 Common Stock Issue additional Common Stock 3-1 55,000.00 55,000.00 OverPriced Jeans, Inc. General Ledger | ' Account # 100 Cash - Big Bank Journal P... Debit Credit Balance 2021 Hestb-Day 3-1 Beginning Balance 3-1 76,000.00 55,000.00 76,000.00 DI 131,000.00 DI 1 Account # 105 Cash - Little Bank Journal P... Debit Credit 2021 Hesth-Day 3-1 Beginning Balance Balance 27,000.00 27,000.00 DI Account # 110 Accounts Receivable Jar P.. Debit Credit 2021 Hestb-Day 3-1 Beginning Balance Balance 158,000.00 158,000.00 DI Account # 120 Inventory Journal P.. Debit Credit 2021 Hesth-Day 3-1 Beginning Balance Balance 36,000.00 36,000.00 DO Account # 150 Equipment Jornal P.. Debit Credit 2021 Horth-Day 3-1 Beginning Balance Balance 60,000.00 60,000.00 DO OverPriced Jeans, Inc. - General Ledger Account # 200 Accounts Payable Journal Page 1 Debit Credit 2021 Month-Day 3-1 Beginning Balance Balance 0.00 0.00 Cr Account # 210 Note Payable - Big Bank Journal Page ! Debit Credit 2021 Month-Day Beginning Balance Balance 3-1 65,000.00 65,000.00 Cr Account # 215 Note Payable - Little Bank Journal Page ! Debit Credit 2021 Month-Day 3-1 Beginning Balance Balance 60,000.00 60,000.00 Cr Account # 220 Interest Payable - Big Bank Journal Page ! Debit Credit 2021 Month-Day 3-1 Beginning Balance Balance 600.00 600.00 Cr Account # 225 Interest Payable - Little Bank Journal Page ! Debit Credit 2021 Month-Day 3-1 Beginning Balance Balance 450.00 450.00 Cr Account # 300 Common Stock Journal Page : Debit Balance 2021 Month-Day 3-1 Beginning Balance 3-1 Credit 75,000.00 55,000.00 75,000.00 Cr 130,000.00 Cr 1 Account # 305 Retained Earnings Journal Page ! Debit Credit 2021 Month-Day 3-1 Beginning Balance Balance 155,950.00 155,950.00 Cr OverPriced Jeans, Inc. General Ledger Account # 400 Sales Revenue Journal Page ! Debit Credit 2021 Month-Day 3-1 Beginning Balance Balance 0.00 0.00 Cr Account # 500 Cost of Goods Sold Journal Page ! Debit Credit 2021 Month-Day 3-1 Beginning Balance Balance 0.00 0.00 Dr Account # 510 Rent Expense Journal Paget Debit Credit 2021 Month-Day 3-1 Beginning Balance Balance 0.00 0.00 Dr Account # 515 Wages Expense Journal Page Debit Credit 2021 Month-Day 3-1 Beginning Balance Balance 0.00 0.00 Dr Account # 520 Interest Expense Journal Page Debit Credit 2021 Month-Day 3-1 Beginning Balance Balance 0.00 0.00 Dr OPJ's - March 31, 2021 Pre-Closing Trial Balance Account # Account Name Debit Credit 100 105 110 120 150 200 210 215 220 225 300 305 400 500 510 515 520 Cash - Big Bank Cash - Little Bank Accounts Receivable Inventory Equipment Accounts Payable Note Payable - Big Bank Note Payable - Little Bank Interest Payable - Big Bank Interest Payable - Little Bank Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Rent Expense Wages Expense Interest Expense Totals 0.00 0.00 OverPriced Jeans, Inc. Income Statement for the Month Ended March 31, 2021 Ente Do N 0.00 Sales Revenue Cost of Goods Sold Gross Profit Expenses: Rent Expense Wages Expense Interest Expense Total Expenses Net Income 0.00 $0.00 Calculation of Retained Earnings as of March 31 for the Balance Sheet Retained Earnings Current Balance Plus March Net Income Retained Earnings as of March 31 for Balance Sheet 0.00 OverPriced Jeans, Inc. Balance Sheet as of March 31, 2021 Assets Cash - Big Bank Cash - Little Bank Accounts Receivable Inventory Equipment Total Assets $0.00 Liabilities Accounts Payable Note Payable - Big Bank Note Payable - Little Bank Interest Payable - Big Bank Interest Payable - Little Bank Total Liabilities Equity: Common Stock Retained Earnings Total Equity 0.00 0.00 Total Liabilities & Equity $0.00 OPJ's March 31, 2021 Post-Closing Trial Balance Account # Debit Credit 100 105 110 120 150 200 210 215 220 225 300 305 400 500 510 515 520 Account Name Cash - Big Bank Cash - Little Bank Accounts Receivable Inventory Equipment Accounts Payable Note Payable - Big Bank Note Payable - Little Bank Interest Payable - Big Bank Interest Payable - Little Bank Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Rent Expense Wages Expense Interest Expense Totals 0.00 0.00