Monday, September 19, 2011

Sole Proprietorship

Exercise 1

Shehla invest into business name ShehGarLynn's Dress Shop as Sole Proprietorship

The following transaction is my example for Sole Proprietorship:

January 10, 2007  Shehla invested $50,000 cash in opening the ShehGarLynn's Dress Shop.

January 11, 2007 She deposit the cash in Bank of America for checking account.

January 15, 2007  She established a petty cash fund, $ 500, check no. 1

January 16, 2007 She issue a check no. 2 for 3 months' rent in advance, at $3,000 per month.

January 17, 2007 Purchased merchandise from Nellie's Company on account, $5,000, terms 2/10, n /30.

January 18, 2007 Paid from the petty cash fund $15 for  cleaning package, voucher no. 1 (consider this a cleaning expense.)

January 19, 2007 Sold merchandise to Ronald Company on account, $3,500, invoice no. 1, terms 2/10, n/30.

January 25, 2007 Paid from petty cash fund for postage, $15, voucher no. 2

January 26, 2007 Sold Merchandise to Ronald Company on account, $2,500, invoice no. 2, term 2/10, n/30

January 27 Paid from the petty cash fund for First Aid emergency, $15, voucher no. 3

January 28 Purchased merchandise from Merly's Company on account, $4,000, terms 2/10, n/30

January 29 Paid for delivery expense from petty cash fund, $12, voucher no. 4

January 30 2007 Sold merchandise to Ronald Company on account, $1,500, invoice no. 3, terms 2/10, n/30.

January 30 2007 Paid Cleaning Service, $200, Check no. 3.

January 31 Ronald Company returned merchandise costing $500 from invoice no. 2. ShehGarLynn's Dress Shop issued credit memo to Ronald Company for $500.

Instruction:

A. Prepare Journal Entries the following transaction above
B. Prepare Trial Balance

No comments:

Post a Comment