In your mini Project, you will have the following 3 Journal entries as part of your adjusting journal entries (with that said, don't forget to add them your project). The purpose of these journal entries

is to close purchase and related accounts to COGS. Insert the $amount for each of the journal entries based on transactions #2, 4, 7, 14 and 16, as well as the balance sheets from 2013 and 2014.

Cost of goods sold

Beginning inventory

Cost of goods sold

Purchase Returns

Purchase discounts

Purchases

Inventory (ending)

40146

source: "additional information"

Cost of goods sold

Here is the mini project...

The 2013 balance sheet of the Captain Jet Inc. is attached. During 2014, the following events occurred.

1. On January 10, sell merchandise on account to Rayms $9,600 and Fischer $8,800. Terms 2/10, n/30. Freight $100 for each sale, F.O.B. shipping point.

2. On January 12, purchase merchandise on account from Zapfel $3,000 and Liotta $2,400. Terms 1/10, n/30. Freight $120 for each sale, F.O.B. destination.

3. Receive checks, $4,000 from Longhini and $2,000 from Hall, for sales on account after discount period has lapsed.

4. On January 15, send checks to Joosten for 9,000 less 2% cash discount, and to Maida for $11,000 less 1% cash discount.

5. On January 16, issue credit of $400 to Fieber for merchandise returned.

6. Summary daily cash sales total $15,500.

7. On January 21, pay off the balances to Zapfel and Liotta for the purchases on January 12.

8. On Feburary 9, receive payment in full from Rayms and Fischer.

9. On March 1, pay rent of $6,000 for a two-year term.

10. On April 1, sell merchandise on account to Dunlap $1,600, term 2/10, n/30. Freight $80, F.O.B. shipping point.

11. Pay $400 cash for office supplies.

12. Cash dividends totaling $800 are declared on June 13 and paid to stockholders on June 23.

13. Issue a note of $120,000 to bank (one year, annual interest rate 3%) for cash.

14. On July 5, purchase merchandise from Maida $33,000, terms 3/10, n/30.

15. On July 7, issue common stock 1000 shares, $10 par, in exchange of a land with a fair market value of $15,000.

16. On July 8, return $200 of merchandise to Maida and receive credit.

17. On August 1, sell merchandise to Lachey on account $80,000, term 1/10, n/30. Freight $1,500, F.O.B. shipping point.

18. Pay off the balance to Maida on August 4.

19. On August 10, receive half of the payment from Lachey.

20. On August 14, write off $1,300 bad debt for one account, Tooket.

21. Pay utitlities expense, $10,902.

22. On August 31, Lachey pays off its balance.

23. On September 1, pay cash $7,500 to Farmington for merchandise purchased last year.

24. On October 1, pay off notes payable $110,000 and associated accrued interest $6,000, of which $1,500 was shown on the balance sheet.

25. Over the year, sales and office employees earned $45,500 in salaries and wages, of which $1,500 was still payable at the end of year.

26. An unpaid utilities bill (December, $1,250) is due on January 10 next year.