Instructions

1. Record each transaction in the Ledger. Start with the Balances given and Record each Double Entry Transaction in the Ledger. Start by recording the Carryover Balances from the previous period (12/31/2014)
2. Record only the CHANGE in each Asset (Checking, Savings, CASH) and / or Liability (VISA) Account that are given in Journal Entry #1. Total the Balances only at the END of the PERIOD. Gross Salary is Revenue. All Payroll Deductions and Expenses are Expenses.

CHARLIES JOURNAL

1. At the end of the day on December 31, 2014Charlie had $500 in his Savings Account, $250 in his Checking Account, $40 in CASH, and a Balance Due of $125 on his VISA card. He also owned Free & Clear an 04 Ford Explorer worth $3500. Record these entries on the Ledger.
2. Charlies earns a salary of $3200 per month and his employer made an automatic deposit in his Checking Account for half of his monthly Salary ($1600.00) on January 1. The Company deducted $310 for Federal Income Tax, $100.00 for Social Security, $25.00 for Medicare, $34 for State Income Tax, $15 for State Disability and $125.00 for Charlies Semi-Monthly contribution for Health Insurance. Record this transaction. You may total the Payroll Taxes as one Expense Category. Note that Health Insurance is not a Payroll Tax. Charlie recorded his Net Deposit in the Checking Account.
3. New Years Day, Charlie celebrated New Years by going out to dinner with his buddies and watched a Bowl Game with them at a Sports Bar. Charlie put his $50.00 dinner tab on his VISA card and paid cash for his $25.00 bar tab. Lump all Entertainment into one category and all Meals out into one category.
4. On January 2, Charlie used On-Line Banking to do two separate transactions. He paid off the $125.00 December 31 VISA Balance and put $125 in Savings.
5. On January 3, Charlie went to the ATM to replenish his CASH. He took a $100 Cash withdrawal.
6. On January 5, Charlie wrote a check to pay his share of the Rent, which was $300.
7. On the 6^th, Charlie filled his car up with gas. The pump rang up $45 worth of gas. Charlie paid cash.
8. On the Friday morning, the 7^th Charlies girlfriend Kim called and reminded him that he hadnt called since New Years Eve. Another guy had asked her out for dinner and a play at the DVC Theatre tonight and she wanted to know if Charlie was planning on taking her out tonight. Charlie told her Of course. I have had tickets for that Chris Isaak concert tonight for over a month. and Dont you remember, I was planning on taking you to dinner before the concert. After Kim hung up, Charlie went on line and paid $300 for scalpers concert tickets. He had to put it on his VISA card. Later, Charlie spent $110 on dinner. He used his ATM.
9. On Sunday Charlie had to pay his roommates for groceries. His share was $75. He wrote a check
10. Charlie got through the next week only having to spend $30 cash on fast food and he used his ATM to pay $35 to clean Kims dress (Misc) that he spilled a drink on at the concert. He recorded those on 1/14.
11. Next day, Charlie used the last of his cash to put $40 gas in the car.
12. 1/16/05 Payday! Charlie records his paycheck the same as he had done on the 1^st.
13. Same day Charlie replenished his cash at the ATM by taking out $100.
14. On the 18^th Charlie registers for his night class and writes 2 checks $180 for tuition and $150 for books.
15. On the 20^th Charlie writes 3 checks for his share of the utilities: PG&E ($65), Cable TV ($25), and Water ($15).
16. On the 25^th Charlie uses his ATM to put $35 worth of gas in his car.
17. Same day he chips in $75 cash to his roommates for food
18. On the 28^th Charlie writes a $125 check for car insurance.
19. Next day Charlie uses his ATM to buy $45 of gas for his car
20. On the 30^th Charlie trades in his 98 Ford Explorer, adding another $500 down from Savings, for a $20,000 2010 Mustang. He takes out a car loan for the difference.

Write an Income Statement for Charlie for the month of January

Write 2 Balance Sheets for Charlie: one as of 12/31/2014, and one as of January 31, 2015

Write Income Statement for January, 2015

Write a Statement of Cash Flows for Charlie for the month of January