OverPriced Jeans, Inc. - Transactions - Additional Information March 2021 Transactions Date March 1 March 1 March 2 Description of the Transaction 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 Take $5,100 cash out of Big Bank to pay for March's rent. The customer that purchased on credit on February 15 days $88,000 cash to pay off the amount due. The cash is deposited into Big Bank. March 10 Sale of inventory to a customer --seling 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-selling price $165,500 - cost of the inventory sold $39,750. The customer pays $35,500 cash that is 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 Take $31,500 cash out of Little Bank to pay employees for wages they have eamed. March 30 Additional Information Note Payable Big Bank: Interest due to Big Bank on the Note 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 OverPriced Jeans, Inc. - Chart of Accounts Account # 100 105 110 120 150 Account Name 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 2021 Month-Day 3-1 Account Name Posted Debit Account Number 100 300 Credit Cash - Big Bank Common Stock Issue additional Common Stock X X 55,000.00 55,000.00 3-1 215 225 100 Notes Payable little bank Interest Payable little bank Cash big bank (Paid amount owed to note payable) X X X X 60,000.00 450.00 X X X X 60,450.00 3-1 510 100 5,100.00 Rent Expenses Cash big bank (Rent paid for March) 5,100.00 3-2 100 110 88,000.00 Cash Big bank Accounts Receivable (Cash collection from customers) 88,000.00 3-10 105 400 73,000.00 Cash Little Bank Sales Revenue (Record Good sold for cash) 73,000.00! 3-10 500 120 23,000.00 Cost of Goods Sold Inventory (Record cost of inventory sold) 23,000.00 3-15 515 105 26,000.00 Wages Expenses Cash Little Bank (Record cash paid for wages expenses) 26,000.00 3-16 120 200 81,750.00 Inventory Accounts Payable Chart Accts Journal Trans 81.750,00 GL Rev-Exp GL Assets GL Liab-Equity Trial Bal ady OverPriced Jeans, Inc. Valeria Trinidad General Ledger Account # 100 Cash - Big Bank Journal Page # Debit Credit Beginning Balance Balance 2021 Month-Day 3-1 3-1 3-1 3-1 3-1 3-2 1 76,000.00 55,000.00 76,000.00 Dr 131,000.00 Dr 1 1 1 1 88,000.00! 3-22 3-26 219,000.00 Dr 2 2 Account # 105 Cash - Little Bank 2021 Month-Day Journal Page Debit Credit 3-1 Beginning Balance 27,000.00 Balance 27,000.00 Dr Account # 110 Accounts Receivable 2021 Month-Day Dani Dan Trans Chart Amat Journal Page Debit Credit Balance COAT CONA Account # 120 Inventory 2021 Month-Day 3-1 Journal Page # Debit Credit Beginning Balance 36,000.00 Balance 36,000.00 Dr Account # 150 Equipment 2021 Month-Day 3-1 Journal Page # Debit Credit Balance Beginning Balance 60,000.00 60,000.00 Dr Overpriced Jeans, Inc. General Ledger RAUS out MECO 200 Accounts Payable by 2021 MON PH Debit C 0.00 0.00 MM 210 Nots Payable Big Bank ME Debit 3.1 Begge C 65.000.00 S.000.000 215 Note Payablete Bank Dube 3.1 Le Credit ME 60,000.00 60.000000 AGCO W 220 Interest Payable. Big Bank 3 DEWO 600.00 0000 AccuW 225 Interest Payable Little Blank Dubi Pet 3.1 Begg On 48000 A300 Cominon BC 20 0 DORA 75,000.00 56.000,00 7800 DC a 130 000 000 AGO 305 Retained Earnings Begiven 135.850.00 Journal Page 1 Debit Credit 2021 Month-Day Beginning Balance Balance 0.00 0.00 Cr Account 500 Cost of Goods Sold Journal Page Debit Credit 2021 Month Day 3-1 Balance Beginning Balance 0.00 0.00 DI Account # 510 Rent Expense Journal Page 5 Debit Credit 2021 Month-Day 3-1 Balance Beginning Balance 0.00 0.00 DI Account # 515 Wages Expense Journal Page! Debit 2021 Month-Day 3.1 Credit Balance 0.000 Beginning Balance 0.00 Account # 520 Interest Expense Journal Page 3 Debit Credit 2021 Month-Day 3.1 Beginning wance Balance 0.00 0.000 Trans Chart Arcts Journal GL Assets AGL Liabl OPJ's - March 31, 2021 Pre-Closing Trial Balance Debit Credit Account # Account Name 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 Earnings Sales Revenue Cost of Goods Sold Rent Expense Wages Expense Interest Expense 0.00 0.00 Totals OverPriced Jeans, Inc. Income Statement for the Month Ended March 31, 2021 Enter amou Do NOT COF Sales Revenue Cost of Goods Sold Gross Profit 0.00 Expenses: Rent Expense Wages Expense Interest Expense Total Expenses Net Income 0.00 $0.00 Calculation of Retained Earnings as of March 31 for the Balance Sheet Retained Earings Current Balance Plus March Net Income Retained Earnings as of March 31 for Balance Sheet 0.00 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 Earnings Total Equity 0.00 Total Liabilities & Equity $0.00 OPJ's March 31, 2021 Post-Closing Trial Balance Er DO Account # Debit Credit 100 105 110 120 150 200 210 215 220 225 300 305 400 500 510 515 520 Account Name 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 Earnings Sales Revenue Cost of Goods Sold Rent Expense Wages Expense Interest Expense 0.00 0.00 Totals