Sole Proprietorship

Solution from Exercise 1-A

	ShehGarLynn'S Dress Shop
	Journal Entries
	For the month Ended January 31, 2007
Date
Jan. 10	Cash	$  50,000.00
	Shehla's Capital		$  50,000.00
	To record Shehla invested into business
Jan. 11	Cash in Bank	$  50,000.00
	Cash		$  50,000.00
	To record cash deposited to Bank of America
Jan. 15	Petty Cash	$        500.00
	Cash in Bank		$        500.00
	To established petty cash check no. 1
Jan. 16	Prepaid Rent	$    9,000.00
	Cash in Bank		$    9,000.00
	To pay 3 months advance of rent at $3,000 per month
Jan. 17	Purchases	$    5,000.00
	Accounts Payable - Nellie		$    5,000.00
	To record merchandise purchased from Nellie's
	Term; 2/10, n/30
Jan. 18	Cleaning Expenses	$          15.00
	Petty Cash		$          15.00
	To record the expenses voucher no. 1
Jan. 19	Accounts Receivable	$    3,500.00
	Sales		$    3,500.00
	To record the sales invoice no. 1
	Term; 2/10, n/30
Jan. 25	General Expenses	$          15.00
	Petty Cash		$          15.00
	To record the postage expense voucher no.
Jan. 26	Accounts Receivable	$    2,500.00
	Sales		$    2,500.00
	To records sales invoice no. 2
	Term; 2/10 n/30
Jan. 27	General Expenses	$          15.00
	Petty Cash		$          15.00
	To record first aid expenses, voucher no. 3
Jan. 28	Purchase	$    4,000.00
	Accounts Payable		$    4,000.00
	To record merchandise purchase on account
	Term; 2/10, n/30
Jan. 29	Delivery Expenses	$          12.00
	Petty Cash		$          12.00
	To record the expenses voucher no. 4
Jan. 30	Accounts Receivable	$    1,500.00
	Sales		$    1,500.00
	To record sales invoice no 3
	Term; 2/10, n/30
Jan. 30	Cleaning Expenses	$        200.00
	Cash in Bank (BOA)		$        200.00
	To record the expenses paid check no. 3
Jan. 31	Sales Returns and Allowances	$        500.00
	Account Receivable		$        500.00
	To record the returned merchandise
	Issued credit memo invoice no. 2