Gironoak, SA is a company that has the following Balance Sheet on December 31st 2021:

Assets		Equities
Furniture Inventories Customers Bank account Cash	1.000 2.000 2.000 4.000 1.000	Paid-in-capital Suppliers	9.000 1.000
TOTAL	10.000	TOTAL	10.000

During 2022 performs the following operations:

1. Sale of a furniture (that it appears in the beginning balance) 1.000. Collection on a bank transfer

2. Purchases of inventories for 1.550 on credit (90 days). Moreover, the invoice of the transportation costs equals 50 and it is paid at this moment by cash

3. We return inventories costing 100 to our supplier. This return reduces the open account with the supplier.

4. Cash Collection of 2.000 from our customers.

5. Sale of merchandise for 8.550 on credit. Minus an immediately discount from prom payment of 50.

6. The company grants a quantity discount of 500 to one of its customers, reducing the open account.

7. Purchase of merchandise on credit for 2.500. The supplier grants a quantity discount of 50 to the company.

8. The customer returns for 1,500 of the delivery because it did not meet the requirements stated in the order. We complete the operation by bank transfer.

9. We have received a long-term loan (3 years) amounting to 10.000 from a bank that is deposited in our check account.

10. Acquisition of computer equipment valued at 2,000, amount paid immediately by bank check,

Other information:

11. The physical count of the merchandise inventory at the end of the year results in an amount of 5,000.

Required:

1. Prepare the journal entries and ledger for the listed transactions assuming a periodic inventory system.

2. Prepare the trial balance

3. Prepare the closing of the accounting cycle

4. Prepare the Income Statement and the Balance Sheet

0. Prepare the opening stage in the journal for the exercise:

A. DEBIT: Banks, Cash, Inventories, Accounts Receivable CREDIT: Capital, Supplier

B. DEBIT: Banks, Cash, Inventories, Accounts Receivable, Furniture CREDIT: Capital, Supplier

C. DEBIT: Capital, Supplier CREDIT: Banks, Cash, Inventories, Accounts Receivable, Furniture

1. Sale of a furniture (that it appears in the beginning balance) 1.000. Collection on a bank transfer

A. Debit: Banks (ASSET) Credit: Accounts Receivable (Assets) Amount = 1,000

B. Debit: Banks (ASSET) Credit: Long term Debt (Liability) Amount = 1,000

C. Debit: Accounts Receivable (ASSET) Credit: Furniture (Assets) Amount = 1,000

D. Debit: Banks (ASSET) Credit: Furniture (Assets) Amount = 1,000

2. Purchases of inventories for 1.6000 on credit (90 days).

A. Debit: Purchase of Merchandise (EXPENSE) Credit: Banks (ASSET) Amount = 1,600

B. Debit: Suppliers / Accounts payable (LIABILITY) Credit: Banks (ASSET) Amount = 1,600

C. Debit: Suppliers /Accounts Payable (LIABILITY)) Credit: Purchase of Merchandise (REVENUE) Amount = 1,600

D. Debit: Purchase of Merchandise (EXPENSE) Credit: Suppliers / Accounts Payable (LIABILITY) Amount = 1,600

3. We return inventories costing 100 to our supplier. This return reduces the open account with the supplier (so, it's reducing our debt with the supplier). *

A. Debit: Supplier / Accounts Payable (LIABILITY) Credit: Purchase returns (ASSET) Amount = 100

B. Debit: Purchase returns(ASSET) Credit: Accounts Receivable (ASSET) Amount = 100

C. Debit: Supplier / Accounts Payable (LIABILITY) Credit: Purchase returns (Revenues) Amount = 100

D. Debit: Purchase returns (Expenses) Credit Suppliers / Accounts Payable (LIABILITIES) : Amount = 100

4. Cash Collection of 2.000 from our customers.

A. Debit: Cash (ASSET) Credit: Accounts Receivable (ASSET) Amount = 2,000

B. Debit: Accounts Receivable (ASSET) Credit: Banks (ASSET) Amount = 2,000

C. Debit: Cash (ASSET) Credit: Sales of merchandise (REVENUES) Amount = 2,000

D. Debit: Accounts Receivable (ASSET) Credit: Accounts Payable (LIABILITIES) Amount = 2,000

5. Sale of merchandise for 8.500 on credit (120 days).

A. Debit: Sales of Merchandise (EXPENSE) Credit: Accounts Receivable (ASSET) Amount = 8,500

B. Debit: Suppliers / Accounts Payable (Liability) Credit: Sales of Merchandise (REVENUE) Amount = 8,500

C. Debit: Cash / Banks (ASSET) Credit: Sales of Merchandise (REVENUE) Amount = 8,500

D. Debit: Accounts receivable (ASSET) Credit: Sales of Merchandise (REVENUE) Amount = 8,500

6. The company grants a quantity discount of 500 to one of its customers, reducing the open account. (So the amount owed by ours customers is reduced)

A. Debit: Sales quantity discount (EXPENSE) Credit: Suppliers / Accounts Payable (LIABILITY) Amount = 500

B. Debit: Sales quantity discount (EXPENSE) Credit: Accounts Receivable (ASSET) Amount = 500

C. Debit: Accounts Receivable (ASSET) Credit:Sales quantity discount (REVENUES) Amount = 500

D. Debit: Suppliers / Accounts Payable (LIABILITY)) Credit: Sales quantity discount (REVENUES) Amount = 500

7. We have received a long-term loan (3 years) amounting to 10.000 from a bank that is deposited in our check account.

A. Debit: Banks (ASSET) Credit: Accounts receivable (ASSET) Amount = 10,000

B. Debit: long-term bank loan (LIABILITY) Credit: Banks (ASSET): Amount = 10,000

C. Debit: Banks (ASSET) Credit: long-term bank loan (LIABILITY) Amount = 10,000

D. Debit: Banks (ASSET) Credit: Sales of merchandiese (REVENUE) Amount = 10,000

8. Acquisition of a Laptop valued at 2,000, amount paid immediately by bank transfer

A. Debit: Laptop (ASSET) Credit: creditors (LIABILITY) Amount = 2,000

B. Debit: Laptop (ASSET) Credit: Sales of merchandise (REVENUES) Amount = 2,000

C. Debit: Accounts payable (LIABILITY) Credit: Banks (ASSETS) Amount = 2,000

D. Debit: Laptop (ASSET) Credit: Banks (ASSET) Amount = 2,000

The expense amount of the income statement equals...

A. 1600

B. 2100

C. 2600

D. 3600

E. 4100

F. 6500

G. 8100

H. 8600

I. 10600

J. 10700

Other?

The revenues amount on the income statement equals.. *

A. 1600

B. 2100

C. 2600

D. 3600

E. 4100

F. 6500

G. 8100

H. 8600

I. 10600

J. 10700

Other?

Which of the following accounts can be found on the ending balance (select all that apply)

A. ASSETS: Banks, Cash, Inventories, Accounts Receivable, Computer Equipment EQUITIES: Capital, Supplier, Long-term bank loan and retained Earnings

B. ASSETS: Banks, Cash, Inventories, Accounts Receivable, Furniture EQUITIES: Capital, Supplier, Long-term bank loan and retained Earnings

C. ASSETS: Banks, Cash, Inventories, Accounts Receivable, Furniture EQUITIES: Capital, Supplier

D. ASSETS: Banks, Cash, Inventories, Accounts Receivable EQUITIES: Capital, Supplier, Long-term bank loan and retained Earnings