Journal Page____1___

Post
Date Description Ref. Debit Credit
07/01/2012 Rent Expense 531 4,000
Cash 110 4,000
To record the payment of rent

07/03/2012 Merchandise Inventory 115 25,000

Accounts Payable 210 25,000
To record the purchased merchandise on
account

07/04/2012 Merchandise Inventory 510 1,000

Cash 110 1,000
To record the payment for freight on purchase

07/06/2012 Accounts Receivable 112 40,000

Sales 410 40,000

Cost of Merchandise Sold 510 24,000

Merchandise Inventory 115 24,000
To record the merchandise sold on account

07/07/2012 Cash 110 18,000

Accounts Receivable 112 18,000
To record the received cash from Flatt Co.

07/10/2012 Cash 110 90,000

Sales 410 90,000

Cost of Merchandise Sold 510 50,000

Merchandise Inventory 115 50,000
To record the merchandise sold

07/13/2012 Accounts Payable 210 25,000

Merchandise Inventory 510 500
 Cash 110 24,500
To record the payment for purchased
merchandise

07/14/2012 Sales Returns and Allowances 411 7,000

Accounts Receivable 112 7,000

Merchandise Inventory 115 4,500

Cost of Merchandise Sold 510 4,500
To record the payment for sales return
Journal Page___2____

Post
Date Description Ref. Debit Credit
07/15/2012 Advertising Expense 521 9,000
Cash 110 9,000
To record the payment for advertising

07/16/2012 Cash 110 32,340

Sales Discounts 412 660
Accounts Receivable 112 33,000
To record the cash received from sale

07/19/2012 Merchandise Inventory 115 22,000

Cash 110 22,000
To record the purchased merchandise

07/19/2012 Accounts Payable 210 23,100

Cash 110 23,100
To record payment to Carino Co.

07/20/2012 Accounts Receivable 112 40,000

Sales 410 40,000

Cost of Merchandise Sold 510 25,000

Merchandise Inventory 115 25,000
To record the merchandise sold on account
07/21/2012 Accounts Receivable 112 1,100
Cash 110 1,100
To record the payment for freight on sale

07/21/2012 Cash 110 17,600

Accounts Receivable 112 17,600
To record the received cash from Owen Co.

07/21/2012 Merchandise Inventory 115 32,000

Accounts Payable 210 32,000
To record the purchased merchandise on
account

07/24/2012 Accounts Payable 210 5,000

Merchandise Inventory 115 5,000
To record the returned merchandise purchased
on July 21

07/26/2012 Sales Returns and Allowances 411 12,000

Cash 110 12,000
Journal Page___3____

Post
Date Description Ref. Debit Credit
07/26/2012 Merchandise Inventory 115 7,200
Cost of Merchandise Sold 510 7,200
To record the returned merchandise purchased
on July 21

07/28/2012 Sales Salaries Expense 520 22,800

Office Salaries Expense 530 15,200
Cash 110 38,000
To record the expenses of salaries

07/29/2012 Store Supplies 117 2,400

Cash 110 2,400
To record the purchased store supplies
07/30/2012 Accounts Receivable 112 18,750
Sales 410 18,750

Cost of Merchandise Sold 510 11,250

Merchandise Inventory 115 11,250
To record the sold merchandise on account

07/30/2012 Cash 110 40,700

Sales Discounts 412 400
Accounts Receivable 112 41,100
To record the received cash from sale

07/31/2012 Accounts Payable 210 27,000

Merchandise Inventory 510 270
Cash 110 26,730
To record the payment for purchase of July 21

GENERAL LEDGER

Cash Account # 110

 Post BALANCE
Date Items Ref. Debit. Credit. Debit Credit
July 01, 2012 Balance ✔ 63,600 63,600
1 To record the J1 4,000 59,600
payment of rent
4 To record the J1 1,000 58,600
payment for freight
on purchase
7 To record the J1 18,000 76,600
received cash from
Flatt Co.
10 To record the J1 90,000 166,600
merchandise sold
13 To record the J1 24,500 142,100
payment for
purchased
merchandise
15 To record the J2 9,000 133,100
payment for
advertising
16 To record the cash J2 32,340 165,440
received from sale
19 To record the J2 22,000 143,440
purchased
merchandise
19 To record payment J2 23,100 120,340
to Carino Co.
21 To record the J2 1,100 119,240
payment for freight
on sale
21 To record the J2 17,600 136,840
received cash from
Owen Co.
26 To record the J3 12,000 124,840
refunded cash on
sales
28 To record the J3 38,000 86,840
expenses of
salaries
29 To record the J3 2,400 84,440
purchased store
supplies
30 To record the J3 40,700 125,140
received cash from
sale
31 To record the J3 26,730 98,410
payment for
purchase of July 21
 Accounts Receivable
Account # 112
Post BALANCE
Date Items Ref. Debit. Credit. Debit Credit
July 01, 2012 Balance ✔ 153,900 153,900
6 To record the J1 40,000 193,900
merchandise sold
on account
7 To record the J1 18,000 175,900
received cash from
Flatt Co.
14 To record the J1 7,000 168,900
payment for sales
return
16 To record the cash J2 33,000 135,900
received from sale
20 To record the J2 40,000 175,900
merchandise sold
on account
21 To record the J2 1,100 177,000
received cash from
Owen Co.
21 To record the J2 17,600 159,400
purchased
merchandise on
account
30 To record the sold J3 18,750 178,150
merchandise on
account
30 To record the J3 41,100 137,050
received cash from
sale

Merchandise Inventory
Account # 115
 Post BALANCE
Date Items Ref. Debit. Credit. Debit Credit
July 01,2012 Balance ✔ 602,400 602,400
3 To record the J1 25,000 627,400
purchased
merchandise on
account
4 To record the J1 1,000 628,400
payment for
freight on
purchase
6 To record the J1 24,000 604,400
merchandise sold
on account
10 To record the J1 50,000 554,400
merchandise sold
13 To record the J1 500 553,900
payment for
purchased
merchandise
14 To record the J1 4,500 558,400
payment for sales
return
19 To record the J2 22,000 580,400
purchased
merchandise
20 To record the J2 25,000 555,400
merchandise sold
on account
21 To record the J2 32,000 587,400
purchased
merchandise on
account
24 To record the J3 5,000 582,400
returned
merchandise
purchased
on July 21
26 To record the J3 7,200 589,600
returned
merchandise
purchased
on July 21
30 To record the J3 11,250 578,350
sold merchandise
on account
31 To record the J3 270 578,080
payment for
purchase of July
 21

Prepaid Insurance Account #

116
Post BALANCE
Date Items Ref. Debit. Credit. Debit Credit
July 1, 2012 Balance ✔ 16,800 16,800

Store Supplies Account # 117

Post BALANCE
Date Items Ref. Debit. Credit. Debit Credit
July 1, 2012 Balance ✔ 11,400 11,400
29 To record the J3 2,400 13,800
purchased store
supplies

Store Equipment Account #

123
Post BALANCE
Date Items Ref. Debit. Credit. Debit Credit
July 1, 2012 Balance ✔ 469,500 469,500
 Accumulated Depreciation-Store Depreciation
Account # 124
Post BALANCE
Date Items Ref. Debit. Credit. Debit Credit
July 1, 2012 Balance ✔ 56,700 56,700

Accounts Payable Account #

210
Post BALANCE
Date Items Ref. Debit. Credit. Debit Credit
July 1, 2012 Balance ✔ 96,600 96,600
3 To record the J1 25,000 121,600
purchased
merchandise on
account
13 To record the J1 25,000 96,600
payment for
purchased
merchandise
19 To record J2 23,100 73,500
payment to
Carino Co.
21 To record the J2 32,000 105,500
purchased
merchandise on
account
24 To record the J3 5,000 100,500
returned
merchandise
purchased
on July 21
31 To record the J3 27,000 73,500
payment for
purchase of July
21
 Salaries Payable Account #
211
Post BALANCE
Date Items Ref. Debit. Credit. Debit Credit

Capital Stock Account # 310

Post BALANCE
Date Items Ref. Debit. Credit. Debit Credit
July 1, 2012 Balance ✔ 75,000 75,000

Retained Earnings Account #

311
Post BALANCE
Date Items Ref. Debit. Credit. Debit Credit
July 1, 2012 Balance ✔ 480,300 480,300

Dividends Account #
312
Post BALANCE
Date Items Ref. Debit. Credit. Debit Credit
July 1, 2012 Balance ✔ 135,000 135,000
 Income Summary Account #
313
Post BALANCE
Date Items Ref. Debit. Credit. Debit Credit
 Sales Account # 410
Post BALAN
CE
Date Items Ref. Debit. Credit. Debit Credit
July 1, 2012 Balance ✔ 3,221,100 3,221,100
6 To record the J1 40,000 3,261,100
merchandise sold
on account
10 To record the J1 90,000 3,351,100
merchandise sold
20 To record the J2 40,000 3,391,100
merchandise sold
on account
30 To record the J3 18,750 3,409,850
sold merchandise
on account

Sales Returns and Allowances Account #

411
Post BALANCE
Date Items Ref. Debit. Credit. Debit Credit
July 1, 2012 Balance ✔ 92,700 92,700
14 To record the J1 7,000 99,700
payment for sales
return
26 To record the J3 12,000 111,700
returned
merchandise
purchased
on July 21
 Sales Discount Account # 412
Post BALANCE
Date Items Ref. Debit. Credit. Debit Credit
July 1, 2012 Balance ✔ 59,400 59,400
16 To record the J2 660 60,060
cash received
from sale
30 To record the J3 400 60,460
received cash
from sale
 Cost of Merchandise Sold Account #
510
Post BALANCE
Date Items Ref. Debit. Credit. Debit Credit
July 1, 2012 Balance ✔ 1,623,000 1,623,000
6 To record the J1 24,000 1,647,000
merchandise sold
on account
10 To record the J1 50,000 1,697,000
merchandise sold
14 To record the J1 4,500 1,692,500
payment for sales
return
20 To record the J2 25,000 1,717,500
merchandise sold
on account
26 To record the J3 7,200 1,710,300
returned
merchandise
purchased
on July 21
30 To record the J3 11,250 1,721,550
sold merchandise
on account

Sales Salaries Expense Account #

520
Post BALANCE
Date Items Ref. Debit. Credit. Debit Credit
July 1, 2012 Balance ✔ 334,800 334,800
28 To record the J3 22,800 357,600
expenses of
salaries
 Advertising Expense Account #
521
Post BALANCE
Date Items Ref. Debit. Credit. Debit Credit
July 1, 2012 Balance ✔ 81,000 81,000
15 To record the J2 9,000 90,000
payment for
advertising

Depreciation Expense Account # 522

Post BALANCE
Date Items Ref. Debit. Credit. Debit Credit

Store Supplies Expense Account #

523
Post BALANCE
Date Items Ref. Debit. Credit. Debit Credit

Miscellaneous Selling Expense Account # 529

Post BALANCE
Date Items Ref. Debit. Credit. Debit Credit
July 1, 2012 Balance ✔ 12,600 12,600
 Office Salaries Expense Account # 530
Post BALANCE
Date Items Ref. Debit. Credit. Debit Credit
July 1, 2012 Balance ✔ 182,100 182,100
28 To record the J3 15,200 197,300
expenses of
salaries

Rent Expense Account # 531

Post BALANCE
Date Items Ref. Debit. Credit. Debit Credit
July 1, 2012 Balance ✔ 83,700 83,700
1 To record the J1 4,000 87,700
payment of rent

Insurance Expense Account #

532
Post BALANCE
Date Items Ref. Debit. Credit. Debit Credit

Miscellaneous Administrative Expense Account #

539
Post BALANCE
Date Items Ref. Debit. Credit. Debit Credit
July 1, 2012 Balance ✔ 7,800 7,800
Unadjusted Trial Balance:
Ocean Atlantic Co.
Unadjusted Trial Balance
For the month ended July 30, 2012

ACCOUNT DEBIT CREDIT

Cash 98,410
Accounts Receivable 137,050
Merchandise Inventory 578,080
Prepaid Insurance 16,800
Store Supplies 13,800
Store Equipment 469,500
Accumulated Depreciation – Store 56,700
Equipment
Accounts Payable 73,500
Capital Stock 75,000
Retained Earnings 480,300
Dividends 135,000
Sales 3,409,850
Sales Returns and Allowances 111,700
Sales Discounts 60,460
Cost of Merchandise Sold 1,721,550
Sales Salaries Expense 357,600
Advertising Expense 90,000
Miscellaneous Selling Expense 12,600
Office Salaries Expense 197,300
Rent Expense 87,700
Miscellaneous Administrative Expense 7,800
TOTAL 4,095,350 4,095,350
 ADJUSTING ENTRIES
Journal Page_______

Post
Date Description Ref. Debit Credit
July 30 Income Summary 602,400
Merchandise Inventory, beg. Bal. 602,400

Merchandise Inventory, end. Bal. 565,000

Income Summary 565,000
To record the adjustments of the
merchandise inventory

30 Insurance Expense 13,400

Prepaid Insurance 13,400
To record the adjustments of the expired
insurance

30 Store Supplies Expense 9,900

Store Supplies 9,900
To record the adjustments of the store
supplies

30 Depreciation Expense 11,500

Accumulated Depreciation-Store 11,500
Equipment
To record the adjustments of the
depreciation

30 Sales Salaries Expense 3,200

Office Salaries Expense 1,300
Salaries Payable 4,500
To record the adjusting entry of accrued
salaries
Financial Statement Forms:

Income Statement
____________________________________________
_____________________________________________________________
_____________________________________________________________
Statement of Retained Earnings

____________________________________________
_____________________________________________________________
_____________________________________________________________
Balance Sheet:
____________________________________________
_____________________________________________________________
_____________________________________________________________
 CLOSING ENTRIES
Journal Page_______

Pos
Date Description t Debit Credit
Ref.
Post-Closing Trial Balance:
____________________________________________
_____________________________________________________________
_____________________________________________________________