Set up following T Accounts

Cash- ?

Accounts Receivable- 800,000

Allowance for bad debts- 100,000

Shoe Inventory-?

Supplies- 50,000

Prepaid Insurance- 10,000

Equipment- 1,000,000

Accumulated Depreciation Equipment- 400,000

Auto-100,000

Accumulated Depreciation - Auto- 75,000

Accounts Payable-80,000

Wages payable-?

Unearned Revenue- 40,00

note payable- 90,000

JHJ Common Stock- 2,000,000

JHJ Retained Earnings- 1,500,000

JHJ Dividends

Shoe Sales

Cost of Shoes Sold

Rent Expense

Supplies Expense

Depreciation Expense

Journalize the following transactions utilizing WEIGHTED AVERAGE inventory valuation method.

Invested additional $200,000 in business

paid $40,000 for supplies

purchased 100,000 pairs of shoes on account for $30 each

paid salaries for $3,000,000

purchased 200,000 pairs of shoes for $40 each

sold on account, 150,000 pairs of shoes at $60 each

withdrew 500,000

collections on accounts receivable $ 4,000,000

write off of uncollectible accounts $90,000

cash sales, 30,000 pairs of shoes at $70 each

paid $20,00 on note plus $10,000 interest

ending supplies 20,000

accrued salaries end of year 300,000

*equipment is depreciated utilizing straightline method and has 10 year life

*auto is now 3 years old and is depreciated utilizing double declining balance with 4 year life

*bad debt expense is estimated to be 20% if credit sales

*the company uses weighted average in calculating perpetual inventories and beginning inventories consisted of:

50,000 pairs of shoes at $20 each

50,000 pairs of shoes at $25 each

Required:

Journalize all entries

Post all entries to ledger.

Prepare trial balance

Prepare income statement

Prepare statement of retained earnings/ owner equity

Prepare balance sheet

prepare inventory chart

Prepare cash flow statement

Prepare closing entries and statement of cash flow