March 2 March 10 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 Journalize and post a transaction - this transaction has already been entered Into the General Journal 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 $5,100 cash out of Big Bank to pay for March's rent. 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 Sale of inventory to a customer-selling price $73,250 - cost of the inventory sold $23,000. 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 eamed. March 16 Purchase $81,750 of additional Inventory. OPJ will pay the manufacturer 50% of the $81,750 in 10 days. OPJ will pay the remaining 50% in 30 days. March 17 Sale of inventory to a customer-selling price $112,000 - cost of the inventory sold $33,000 The customer will pay for the purchase in 30 days March 20 Sale of Inventory to a customer -- solling price $165,500 - cost of the inventory sold $39.750. The customer pays $35,500 cash that in 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 $31,660ash out of Little Bank to pay employees for wages they have camed Additional Information Note Payable Big Bank: Interest due to Big Bank on the Noto Payable for the month of March is $975. As of March 31 OPJ owes Big Bank a total of $1,575 for interest ($600 for February + $975 for March) Interest will be paid to Big Bank in June. 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 Valeria Trinidad OverPriced Jeans, Inc. General Journal Page # 1 2021 Month-Day 3-1 Posted Credit Account Number 100 300 Account Name Cash - Big Bank Common Stock Issue additional Common Stock Debit 55,000.00 55,000.00 3-1 60,000.00 215 100 225 100 Notes Payable little bank Cash big bank Interest Payable little bank Cash big bank Pay loan to little bank + interest X X X X 6,000,000.00 450.00 450.00 3-1 510 100 4,900.00 Rent Expenses Cash big bank March rent 4,900.00 3-2 100 110 88,000.00 Cash Big bank Accounts Receivable Collect Feb 15th payment 88,000.00 OverPriced Jeans, Inc. - General Ledger Account # 100 Cash - Big Bank Journal Page # Debit Credit 2021 Month-Day 3-1 Balance Beginning Balance 76,000.00 55,000.00 76,000.00 Dr 131,000.00 Dr 1 1 1 1 3-1 3-1 3-1 3-2 3-22 3-26 1 88,000.00! 219,000.00 Dr 2 2 Account # 105 Cash - Little Bank Journal Page 1 Debit Credit 2021 Month-Day 3-1 Balance Beginning Balance 27,000.00 27,000.00 Dr Account # 110 Accounts Receivable 2021 Month-Day 3-1 Journal Page 0 Credit Debit 158,000.00 Balance 158,000.00 Dr Beginning Balance Directions Trans A Chart Acctn Journal GL Astot GL Liab-Equity AGL Rev-Exp Ready TTTT TTU NUUUUTILS NOUGIVOVIC 21 h-Day -1 Journal Page # Debit Credit Balance Beginning Balance 158,000.00 158,000.00 Dr Ecount # 120 Inventory 2021 onth-Day 3-1 Journal Page # Debit Credit Balance Beginning Balance 36,000.00 36,000.00 Dr Account # 150 Equipment 2021 Month-Day 3-1 Journal Pago Debit Credit Balance Beginning Balance 60,000.00 60,000.00 Dr Overpriced Jeans, Inc. - General Ledger Account # 200 Accounts Payable 2021 Month-Day 3-1 Journal Page # Debit Credit Balance Beginning Balance 0.00 0.00 Cr Account # 210 Note Payable - Big Bank 2021 Month-Day 3-1 Journal Page # Debit Credit Balance Beginning Balance 65,000.00 65,000.00 CM Account # 215 Note Payable - Little Bank 2021 Month-Day 3-1 Journal Page w Debit Balance Beginning Balance Credit 60,000.00 60,000.00 C Account # 220 Interest Payable - Big Bank 2021 Month-Day 3-1 Journal Page Debit Credit Beginning Balance Balance 600.00 Cr 600.00 Directions Trans Chart Aects Journal GL Assets OL Lab Equity Ready GL Rev.Exp OPJ's - March 31, 2021 Pre-Closing Trial Balance Account # Account Name Debit Credit - 100 105 110 120 150 200 210 215 220 225 300 305 400 500 510 515 520 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 Earings Sales Revenue Cost of Goods Sold Rent Expense Wages Expense Interest Expense Totals 0.00 0.00 OverPriced Jeans, Inc. Income Statement for the Month Ended March 31, 2021 Sales Revenue Cost of Goods Sold Gross Profit 0.00 Expenses: Rent Expense Wages Expense Interest Expense 0.00 Total Expenses Net Income $0.00 Calculation of Retained Earnings as of March 31 for the Balance Sheet Retained Eamings Current Balance Plus March Net Income Retained Eamings as of March 31 for Balance Sheet 0.00 icia OverPriced Jeans, Inc. Balance Sheet as of March 31, 2021 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 Earings Total Equity 0.00 Total Liabilities & Equity $0.00 OPJ's - March 31, 2021 Post-Closing Trial Balance Account # Account Name Debit Credit 100 Cash - Big Bank 105 Cash - Little Bank 110 Accounts Receivable 120 Inventory 150 Equipment 200 Accounts Payable 210 Note Payable - Big Bank 215 Note Payable - Little Bank 220 Interest Payable - Big Bank 225 Interest Payable - Little Bank 300 Common Stock 305 Retained Earnings 400 Sales Revenue 500 Cost of Goods Sold 510 Rent Expense 515 Wages Expense 520 Interest Expense Totals 0.00 0.00