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 joumalize and post a transaction - this transaction has already been entered into the General Joumal 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 $450 for interest owed on the Note Payable for February. The $450 cash is also taken out of Big Bank. March 1 Take $4,400 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 $91,550 -- cost of the inventory sold $23,500. 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 $82,750 of additional inventory. OPJ will pay the manufacturer 50% of the $82,750 in 10 days. OPJ will pay the remaining 50% in 30 days. March 17 Sale of inventory to a customer -- selling price $111,000 -- cost of the inventory sold $36,000. The customer will pay for the purchase in 30 days. March 20 Sale of inventory to a customer -- selling price $183,500 -- cost of the inventory sold $45,000. The customer pays $25,000 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 $37,000 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 $620. As of March 31 OPJ owes Big Bank a total of $1,220 for interest ($600 for February + $620 for March). Interest will be paid to Big Bank in June. Over Priced Jeans, Inc. - Chart of Accounts Account # Account Name 100 105 110 120 150 Assets: Cash - Big Bank Cash - Little Bank Accounts Receivable Inventory 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 Over Priced Jeans, Inc. General Journal Page # 1 Account Name Posted Debit Credit 2019 Month-Day 3-1 Account Number 100 55,000.00 300 Cash - Big Bank Common Stock Issue additional Common Stock 55,000.00 Overpriced Jeans, Inc. - General Ledger Account # 100 Cash - Big Bank Joymal Page # Debit Credit Balance 2019 Month-Day 3-1 3-1 Beginning Balance 76,000.00 55,000.00 76.000.00 Dr 131,000.00 Dr 1 Account # 105 Cash - Little Bank Journal Page # Debit Credit 2019 Month-Day 3-1 Balance Beginning Balance 27,000.00 27,000.00 Dr Account # 110 Accounts Receivable 2019 Journal Page # Debit Credit Balance Month-Day 3-1 Beginning Balance 158,000.00 158,000.00 Dr Account # 120 Inventory Joumal Page # Debit Credit 2019 Month-Day 3-1 Balance Beginning Balance 36,000.00 36,000.00 Dr Account # 150 Equipment Journal Page # Debit Credit 2019 Month-Day 3-1 Balance Beginning Balance 60,000.00 60,000.00 Dr OverPriced Jeans, Inc. - General Ledger Account # 200 Accounts Payable Journal Page # Debit Credit 2019 Month-Day 3-1 Balance Beginning Balance 0.00 0.00 Cr Account # 210 Note Payable - Big Bank Journal Page # Debit Credit 2019 Month-Day 3-1 Balance Beginning Balance 65,000.00 65,000.00 Cr Account # 215 Note Payable - Little Bank Journal Page # Debit Credit 2019 Month-Day 3-1 Balance Beginning Balance 60,000.00 60,000.00 Cr Account # 220 Interest Payable - Big Bank Journal Page # Debit Credit 2019 Month-Day 3-1 Balance Beginning Balance 600.00 600.00 Cr Account # 225 Interest Payable - Little Bank Journal Page # Debit Credit 2019 Month-Day 3-1 Balance Beginning Balance 450.00 450.00 Cr Account # 300 Common Stock Journal Page # Debit Credit Balance 2019 Month-Day 3-1 3-1 Beginning Balance 75,000.00 55,000.00 75,000.00 Cr 130,000.00 cm 1 Account # 305 Retained Earnings Journal Page # Debit Credit 2019 Month-Day 3-1 Balance Beginning Balance 155,950.00 155,950.00 Cr Overpriced Jeans, Inc. - General Ledger Account # 400 Sales Revenue Joumal Page # Debit Credit 2019 Month-Day 3-1 Balance Beginning Balance 0.00 0.00 Cr Account # 500 Cost of Goods Sold Journal Page # Debit Credit 2019 Month-Day 3-1 Balance Beginning Balance 0.00 0.00 Dr Account # 510 Rent Expense Joumal Page # Debit Credit 2019 Month-Day 3-1 Balance Beginning Balance 0.00 0.00 Dr Account # 515 Wages Expense Journal Page # Debit Credit 2019 Month-Day 3-1 Balance Beginning Balance 0.00 0.00 Dr Account # 520 Interest Expense Journal Page # Debit Credit 2019 Month-Day 3-1 Balance Beginning Balance 0.00 0.00 Dr OPJ's March 31, 2019 Post-Closing Trial Balance Account # Account Name Debit Credit 100 Cash - Big Bank Cash - Little Bank 105 110 Accounts Receivable 120 150 200 210 215 220 225 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 300 305 400 500 510 515 520 Totals 0.00 0.00 OverPriced Jeans, Inc. Income Statement for the Month Ended March 31, 2019 Sales Revenue Cost of Goods Sold Gross Profit 0.00 Expenses: Rent Expense Wages Expense Interest Expense Total Expenses 0.00 Net Income $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, 2019 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 0.00 Equity: Common Stock Retained Earnings Total Equity 0.00 Total Liabilities & Equity $0.00 OPJ's - March 31, 2019 Pre-Closing Trial Balance Account # Account Name Debit Credit 100 105 110 120 150 200 210 215 220 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 225 300 305 400 500 510 515 520 Totals 0.00 0.00 T