POST JOURNAL ENTRIES TO T-ACCOUNTS

. Cash 30,000 Notes Payable 30,000 2. Land 11,500 Common Stock 500 Paid-In Capital 11,000 3. Cash 95,760 Common Stock 5,000 Paid-In Capital 90,760 4. January: Cash 45,000 Accounts Receivable 45,000 February: Cash 30,000 Account Receivable 30,000 5. Accounts Payable 29,630 Cash 29,630 6. Prepayment Advertising 1,660 Cash 1,660 7. Building 8,800 Cash 8,800 8. Cash 4,580 Accumulated Depreciation 3,210 Building 5,675 Gain 2,115 9. 12/31/2021 A/P: $39,630 01/28/2022 Cash Payment: ($29,630)

Remaining Balance: $10,000 Accounts Payable 10,000 Cash 10,000 10. Prepayment - Insurance 12,435 Cash 12,435 11. Treasury Stock 7,200 Cash 7,200 12. 20,000,000 shares + 500,000 shares (2) + 5,000,000 shares (3) - 300,000 shares (11) 25,200,000 shares *$0.20/share = $5,040 Dividend 5,040 Cash 5,040 13. Accounts Receivable 515,000 Sales 515,000 14. January Sales Received (Question 13): Cash 148,000 Accounts Receivable 148,000 February Sales Received: Cash 138,000 Accounts Receivable 138,000 March Sales Received: Cash 106,000 Accounts Receivable 106,000 15. Operating Expense Salary 92,780 Cash 92,780

16. Purchase 335,000 Accounts Payable 335,000 17. January Payment (Question 16): Accounts Payable 106,000 Cash 106,000 February Payment: Accounts Payable 99,000 Cash 99,000 March Payment: Accounts Payable 87,000 Cash 87,000 18. $25,000 notes payable * 9% * = $563 Interest Expense 563 Cash 563 Interest Payable 1,750 Cash 1,750 19. A) Operating Expense Salary 6,500 Salary Payable 6,500 B) Unearned Revenue 38,846 Sales Revenue 38,846 Sales Revenue 57,000 Unearned Revenue 57,000 C) Depreciation Expense 6,800 Accumulated Depreciation 6,800 D) Operating Expense Advertising 1,107 Prepayment Advertising 1,107

E) Operating Expense Insurance 2,300 Prepayment Insurance 2,300 $12,435 (Question 10) * (1/12) = $1,036 Operating Expense Insurance 1,036 Prepayment Insurance 1,036 F) $30,000 (Question 1) * 12% * (1/4) = $900 Interest Expense 900 Interest Payable 900 G) Beginning Balance + Purchases COGS = Ending Inventory $111,836 + $335,000 COGS = $145,000 COGS = $301,836 Inventory 33,164 Cost of Goods Sold 301,836 Purchase 335,000 Or Ending Inventory 145,000 Cost of Goods Sold 301,836 Beginning Inventory 111,836 Purchase 335,000 H) Income Tax Expense $23,839 Income Tax Payable $23,839