Setup & Instructions: You just started your new job as a staff accountant for Auggie Gear, Inc., a company that sells Augsburg University clothing, mugs, hats, etc.

You're pretty excited about your new job because you've heard all the stories about how accountant's are essentially the rock stars of the business world. The stories

are true. Anyway, your company had transactions "A" through "H" noted below throughout the month of January 2021.

Instructions - For each transactions "a" through "h' below:

1) First, record the necessary journal entry (utilize the "Chart of Accounts" below).

2) After recording each entry, post the effects of the Journal Entry to the appropriate T-accounts.

3) Utilizing the ending balances in each T-account to complete the financial statements on the second tab of this document.

Date 2-Jan Transactions - January 2021 On January 2nd, Auggie Gear purchased and received 3,000 t-shirts, purchased on account with plans of selling the shirts to the campus book store. The t-shirts cost $3 cach. 8-Jan On January 8th, Augie Gear purchased and received another 1,750 t-shirts on account that you plan to sell to customers throughout the year The t-shirts cost $5 each. 16-Jan On January 16th, you paid employees of Auggie Gear their wages of $6,200 for the pay period from 1/1/21 - 1/15/21. 24-Jan On January 24th, Auggie Gear purchased and received 600 more t-shirts on account that they plan to sell to customers throughout the year. The T-shirts cost $5.75 cach. 30-Jan On January 30th, sold 1,000 t-shirts on account for S15 per shirt. Auggie Gear uses LIFO as their inventory costing method. 31-Jan On January 31st Auggie Gear sold an additional 2,000 t-shirts for SiS per shirt. The customer paid $500 cash on the date of purchase, and will pay the remaining balance due on February 28th. 31-Jan You owe your employees wages for the pay period from 1/1621 through 1/31/21 totaling 86,350. The wages will be paid on February 2nd, 2021 25-Jan Auggie Gear management elects to utilize the "Percentage of Credit Sales" method to estimate their bad debt each month. Based on her history with a similar business, your manager estimates that you ultimately won't collect 2.0% of sales made on account during the month. Chart of Accounts Cash Accounts Receivable Allowance for Doubtful Accounts Prepaid Rent Inventory Accounts Payable Deferred Revenue Wages Payable Notes Payable Common Stock Retained Earnings Sales Revenue Service Revenue Cost of Goods Sold Bad Debt Expense Supplies Expense Wage Expense Ledger Accounts (T-Accoun Balance Sheet Accounts ASSETS LIABILITIES Debit Credit STOCKHOLDERS EQUITY Debit Credit Debit Credit Accounts Payable Cash 10.900 Common Stock 5,800 Beg al 500 Begal 10.900 500 S.NO Deferred Revenue Accounts Receivable 2.000 Retained Earnings 600 al og al 2,000 600 Allowance for Doubtful Accounts 1,000 megal Wages Payable O Regal 1,000 Prepaid Rent Notes Payable Hal 5.000 Beat 5.000 Inventory Hal T-Accounts) Income Statement Accounts ERS EQUITY Credit REVENUE Debit Credit EXPENSES Debit Credit Stock 5.800 Sales Revenge Cest of Goods Sold ol 5,800 Service Revenge Bad Debt Expense arnings 6 metal Otel 600 Supplies Expense go Wage Expense Behal Wage Expand Journal Entries Art Description Debat Credo Date 2.Jan by Nlan C) 16-Jan 24-Jan el 30-Jan 31-Jan O 31-Jan Tebit/Credit Balance Check Price Per Total Codul Date 2.Jan 8-Jan 34.Jan Auggie Gear, Inc. Income Statement For the Month Ended January 31, 2021 Sales Revenue Less: Cost of Goods Sold Gross Profit 0 Operating Expenses: Total Operating Expenses 0 Net Income Auggie Gear, Inc. Statement of Retained Earnings For the Month Ended January 31, 2021 Retained Earnings 600 Beg. Bal. January 1, 2021 January Activity End. Bal. January 31, 2021 Common Stock 5,800 0 5,800 600 Auggie Gear, Inc. Balance Sheet As of January 31, 2021 Assets Current Assets Cash Inventory Accounts Receivable Less: Allowance for Doubtful Accounts Total Current Assets 0 Total Assets Liabilities & Stockholders' Equity Liabilities Current Liabilities Total Current Liabilities 0 Long-Term Liabilities Total Liabilities Stockholders' Equity 0 Total Stockholders' Equity Total Liabilities & Stockholders' Equity 0