Please complete ledger and statements for Free style Fashion as of January 2018
Chapter Inventory: Merchandising Transactions CS-2 LO 3 4 5 6 Freestyle Fashion is an urban clothing retailer using the perpetual inventory system. Its balance sheet as at January 1, 2018 is presented below. Freestyle Fashion Balance Sheet As at January 1, 2018 Current Assets Cash $28,400 Merchandise Inventory 50,000 Prepaid Rent 12,000 Total Current Assets Property, Plant & Equipment Equipment 32,000 Total Property, Plant & Equipment Total Assets $90,400 32,000 $122,400 $20,500 12,000 $32,500 Current Liabilities Accounts Payable Unearned Revenue Total Current Llabilities Long-Term Liabilities Notes Payable Total Long-Term Liabilities Total Liabilities Owner's Equity Styles, Capital Total Liabilities and Owner's Equity 60,000 60,000 92,500 29.900 $122,400 Jan 9 During January 2018, Freestyle Fashion had the following transactions. Jan 2 Purchased 490 jackets at $50 each on account (with terms 2/10, 1/30) Jan 5 Sold $50,000 worth of inventory on account; this inventory cost $39,000 Purchased 100 pairs of jeans at $20 each on account (with terms 4/15, 1/30) Jan 11 Paid the balance owed to the supplier for all the jackets purchased on January 2 Jan 16 Paid wages of $2,000 A customer returned products for cash to the store due to a defect; these products were originally sold for $200 and cost $75 Jan 21 Paid the balance owed to the supplier for jeans purchased on January 9 Jan 24 Received $25,000 cash from sales previously made on account Jan 26 incurred $2,500 in utilities expenses, to be paid next month Jan 30 Sold $20,000 worth of inventory for cash; this inventory cost $15,000 Jan 18 Part d-post all transactions from the journal to the leder Cash Description PR DR CR $ J1 $ Account: Date Beginning 1/11/18 1/16/18 1/18/18 1/21/18 1/24/18 1/30/18 J1 $ GL No: 101 Balance 28,400 DB 28,400 DB 28,400 DB 28,400 DB 28,400 DB 28,400 DB 28,400 DB J1 $ J1 $ J1 $ J1 $ Account: Accounts Receivable GL No: 105 Date Description PR DR CR Balance $ DB Beginning 1/5/18 1/24/18 J1 $ DB J1 $ DB Account: GL No: 110 Prepaid Rent Description PR DR CR Date Beginning 1/31/18 $ Balance 12,000 11,000 DB J2 $ DB 115 Merchandise Inventory Description PR DR CR $ DB DB J1 J1 DB Account: Date Beginning 1/2/18 1/5/18 1/9/18 1/11/18 1/18/18 1/21/18 1/30/18 J1 $ GL No: Balance 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 $ $ $ $ $ $ DB J1 DB J1 DB J1 DB J1 $ DB Account: GL No: 120 Equipment Description PR DR CR Date Beginning Balance 32,000 DB $ Account: GL No: 125 Accumulated Depreciation, Equipment Description PR Date DR CR Balance CR Beginning 1/31/18 $ $ adjusting entry J2 2,000 CR Account: 200 Accounts Payable Description PR DR CR $ CR J1 CR Date Beginning 1/2/18 1/9/18 1/11/18 1/21/18 1/26/18 GL No: Balance 20,500 20,500 20,500 20,500 20,500 20,500 J1 $ CR 888888 J1 CR J1 CR $ $ J1 CR Interest Payable Description PR DR CR Account: Date Beginning 1/31/18 GL No: 205 Balance $ CR $ 100 CR adjusting entry J2 Account: GL No: 215 Unearned Revenue Description Date PR DR CR Beginning 1/31/18 CR Balance 12,000 11,000 $ $ adjusting entry J2 CR Account: 220 Notes Payable Description GL No: Balance PR DR CR Date Beginning $ 60,000 CR Account: GL No: 300 Styles, Capital Description PR DR CR Balance Date Beginning 1/31/18 CR $ S 29,900 29,900 closing entry J3 CR Account: Income Summary Description GL No: 315 Balance Date PR DR CR $ CR J3 $ CR Beginning 1/31/18 1/31/18 1/31/18 closing entry closing entry closing entry J3 $ 888 CR J3 $ CR Account: Sales Revenue Description GL No: 400 Balance PR DR CR $ - CR J1 $ CR Date Beginning 1/5/18 1/30/18 1/31/18 1/31/18 J1 $ J2 $ CR adjusting entry closing entry J3 $ CR Account: GL No: 405 Sales Returns & Allowances Description Date PR DR CR Balance CR Beginning 1/18/18 1/31/18 J1 CR $ $ closing entry J3 CR Account: Cost of Goods Sold Description PR DR CR GL No: 500 Balance $ DB J1 DB Date Beginning 1/5/18 1/18/18 1/30/18 1/31/18 J1 $ $ $ DB J1 DB closing entry J3 $ DB Account: Depreciation Expense Description GL No: 510 Balance Date PR DR CR $ - DB Beginning 1/31/18 1/31/18 J2 DB adjusting entry closing entry $ $ J3 DB Account: GL No: 515 Rent Expense Description PR DR CR Balance DB Date Beginning 1/31/18 1/31/18 J2 DB adjusting entry closing entry $ $ J3 DB Account: GL No: 520 Interest Expense Description Date PR DR CR Balance $ DB Beginning 1/31/18 1/31/18 J2 $ DB adjusting entry closing entry J3 $ DB Account: GL No: 545 Salaries Expense Description Date PR DR CR Balance $ DB Beginning 1/16/18 1/31/18 J1 DB $ $ closing entry J3 DB Account: Utilities Expense Description GL No: 550 Balance Date PR DR CR DB Beginning 1/26/18 1/31/18 J1 DB $ $ closing entry J3 $ DB Freestyle Fashion Income Statement For the month ended 1/31/2018 Sales Revenue Less: Sales Returns & Allowances Net Sales Cost of Goods Sold Gross Profit Operating Expenses Selling Expenses Depreciation Expense - Store Equipment Rent Expense - Retail Space Salaries Expense - Sales Staff Utilities Expense - Retail Space Total Selling Expenses Adminstrative Expenses Salaries Expense - Office Staff Utilities Expense - Office Space Total Adminstrative Expenses Total Operating Expenses Income from Operations Other Income and Expenses Interest Expense Net Income Freestyle Fashion Income Statement For the month ended 1/31/2018 Styles, Capital at January 1, 2018 Add: Net Income Styles, Capital at January 31, 2018 Freestyle Fashion Balance Sheet As of 1/31/2018 Assets Current Assets Cash Accounts Receivable Prepaid Rent Merchandise Inventory Current Assets Property, Plant and Equipment Equipment Accumulated Depreciation Property, Plant and Equipment Total Assets Liabilities Current Liabilities Accounts Payable Interest Payable Unearned Revenue Total Current Liabilities Long-term Liabilities Notes Payable Total Liabilities Owner's Equity Styles, Capital Total Liabilities and Owner's Equity
