Journal # Reason Action

1 Start up Costs/Creation of business Cash increase

2 Rent paid for September Cash decrease
3 Purchase of new inventory on credit Inventory Increase
4 Purchase of fixtures and fittings Non current assets increase
5 Advertising Costs Advertising Expense Inc
6 Wages Paid Wages paid
7 Purchase of office supplies Office Supplies paid in cash
8 Payment of Utilities Utilities paid in cash
Action 2 Action 3
Bank Liability Created Owners Equity Paid in
Rent paid increase
AP Increase
cash decrease
cash decrease
cash decrease
cash decrease
cash decrease
 CASH BA
DR CR DR
(1) Paid In Cash 165,000.00 (2) Rent Paid 1,485.00
(4) Fixtures 15,500.00
(5) Advertising 1,320.00
(6) Wages 635.00
(7) Office Supp 1,100.00
(8) Utilities 275.00

RENT EXPENSE ACCOU

DR CR DR
(2) Rent Paid 1,485.00

FIXTURES ADVERT
DR CR DR
(4) Fixtures 15,500.00 (5) Advertising
 BANK LOAN PROPRIETERS CAPITAL
DR CR DR
(1) Paid In Cash 100,000.00

ACCOUNTS PAYABLE INVENTORY

DR CR DR
(3) Purchase of inven 137,500.00 (3) Purchase of inventory

ADVERTISING EXPENSE WAGES

DR CR DR
(5) Advertising 1,320.00 (6) Wages
PROPRIETERS CAPITAL OFFICE SUPPLIES
CR DR CR
(1) Paid In Cash 65,000 (7) Office Supp 1,100.00

INVENTORY UTILITIES
CR DR CR
137,500.00 (8) Utilities 275.00

WAGES
CR
635.00
CR

CR
Total Debits 1,197,758.00
Total Credits 1,197,758.00

CASH
DR CR DR
(1) Paid In Cash 165,000.00 (2) Rent Paid 1,485.00
(9) Sales 38,000.00 (4) Fixtures 15,500.00
(11) Acc Rec 3,614.00 (5) Advertising 1,320.00
(6) Wages 635.00
(7) Office Supp 1,100.00
(8) Utilities 275.00
(12) 96,195.00
(14) 688.00
(15) 1,485.00
(20) 660.00
(18) 2,310.00
BAL 84,961.00 BAL
206,614.00 206,614.00

BAL C/F 84,961.00 BAL C/F

RENT EXPENSE
DR CR DR
(2) Rent Paid 1,485.00 (12)
(15) 1,485.00

FIXTURES A
DR CR DR
(4) Fixtures 15,500.00 (5) Advertising

ACCOUNTS Receivable
DR CR DR
(10) Sales 14,850.00 (11) Acc Rec 3,614.00
 PREPAID INSURANCE C
DR CR DR
(18) 2117.5 (14)
 BANK LOAN PROPRIETERS CAPITAL
DR CR DR
(1) Paid In Cash 100,000.00

100,000.00 BAL
100,000.00 100,000.00

100,000.00 BAL C/F

ACCOUNTS PAYABLE INVENTORY

DR CR DR
96,195.00 (3) Purchase of inven 137,500.00 (3) Purchase of inventory
(13) 49,940.00 (13)
(20) 1,100.00

ADVERTISING EXPENSE WAGES

DR CR DR
(5) Advertising 1,320.00 (6) Wages
(14)
(15)

ACCRUED WAGES ACCRUED EXPENSES

DR CR DR
(15) 440.00
 COST OF GOODS SOLD
DR CR
38,140.00
PROPRIETERS CAPITAL OFFICE SUPPLIES
CR DR
(1) Paid In Cash 65,000 (7) Office Supp 1,100.00
(20) 1,760.00

65,000.00 BAL
65,000.00 65,000.00 2,860.00

65,000.00 BAL C/F 2,860.00

INVENTORY UTILITIES
CR DR
137,500.00 (14) 38,140.00 (8) Utilities 275.00
49,940.00 (19) 226.00

WAGES Revenue
CR DR
635.00 (9) Sales
688.00 (10) Sales
440.00

ACCRUED EXPENSES Insurance Expense

CR DR
(19) 226.00 (18) 192.5
 SUPPLIES
CR

2,860.00
2,860.00

ILITIES
CR

venue
CR
38,000.00
14,850.00

ce Expense
CR
 9
10
11
12
13
14
15
16
17
18
19
20
DR CR CR
Cash Revenue
Accounts Receivable Revenue
Cash Accounts Receivable
Accounts Payable Cash
Inventory Accounts Payable
COGS Inventory
Wages Expense Cash
Wages Expense Wages Earned
Rent Paid Cash
Insurance Exp (192.50) Prepaid Insurance (2117.5) Cash
Utilities Accrued Expenses
Office Supplies Cash (660) Accounts Payable (1100)

2117.5
$
38,000.00
14,850.00
3,614.00
96,195.00
49,940.00
38,140.00
688.00
440.00
1,485.00
2,310.00
226.00
1,760.00
Revenue 52,850.00
Cost of Goods Sold 38,140.00
Net 14,710.00

Operation Expenses
Office Supplies 2,860.00
Rent Expense 1,485.00
Utilities Expense 501.00
Wages 1,763.00
Advertising 1,320.00
Insurance 192.50

6,588.50