Set up following T Accounts

Cash

Accounts Receivable

Shoe Inventory

Supplies

Auto

Accumulated Depreciation - Auto

Accounts Payable

JHJ Common Stock

JHJ Retained Earnings

JHJ Dividends

Shoe Sales

Cost of Shoes Sold

Rent Expense

Supplies Expense

Depreciation Expense

-------------------Journalize the following transactions utilizing LIFO inventory valuation method.

Invested $100,000 in business.

Purchased shoes on account for inventory, 20,000 @ $20 each

Purchased auto for $30,000 paying $10,000 in cash with balance to be paid on account.

Paid rent expense, $10,000.

Purchased supplies, $40,000.

Purchased shoes on account, 30,000 pairs @ 25 each.

Cash sales, $500,000 (10,000 pairs of shoes).

Credit sales, $1,200,000 (24,000 pairs of shoes).

Paid on accounts payable, $600,000.

Received cash from credit customers, $800,000.

Ending supplies, $10,000.

Paid dividends, $20,000.

Journalize the adjusting entry for auto utilizing Double Declining Balance method of Depreciation, 4-year life with salvage value of $3,000.

Required:

Journalize all entries

Post all entries to ledger.

Prepare trial balance

Prepare income statement

Prepare statement of retained earnings

Prepare balance sheet

Prepare cash flow statement

Prepare closing entries