JE #1 JE #2 Required Transactions Basketball R Us had the following transactions in year 2 1) Create journal entries for the transaction below, then 2) post your journal entries to the T accounts and 3) complete the Income Statement Note: Basketballs R Us uses a perpetual inventory system Given: We buy Basketballs for $6, we sell basketballs for $10 1) We paid for the basketballs purchased in the prior period (hint: use Accts Payable) 2) We sell 700 basketballs on account (hint: use Accts Receivable) 3) Wages are $2000 (paid from cash) 4) Rent is $1500 (paid from cash) Account Name Basketballs R Us - Journal Debit Credit JE #3 Screenshot JE #4 Basketballs R Us - Ledger (Balance Sheet totals carried forward) Cash Accts Payable 31,500 18,000 Accts Receivable Inventory 12,000 minus: Sales Capital 25,000 500 Withdrawal Sales Cost of Goods Sold Wage Expense Basketballs R Us Multi-Step Income Statement-month #2 Rent Expense Cost of Goods Sold subtotal: Gross Profit Screenshot 1000 minus: Sales Basketballs R Us Multi-Step Income Statement - month #2 Cost of Goods Sold subtotal: Gross Profit less: Wage Expense Rent Expense Total Operating Expenses Net Income