Company: BlueSky Supplies
Accounting Period: January 1-31, 2025
Assume perpetual inventory system is used.
Transactions for January 2025
Jan 1 - Owner invested $50,000 cash into the business.
Jan 2 - Purchased equipment for $10,000 on account |
Jan 3 -Purchased supplies for $1,500 cash.
Jan 5 - Paid rent expense of $2,000 cash.
Jan 6-Purchased inventory for $8,000 on account.
Jan 8 -Made cash sales of $12,000; cost of goods sold was $6,500.
Jan 10 - Paid utilities expense of $300.
Jan 11 - Sold goods on account for $7,000; cost of goods sold was $3,800.
Jan 13 - Paid $4,000 to suppliers on account.
Jan 15 - Received $5,000 from customers on account.
Jan 17 - Paid salaries expense of $2,500 cash.
Jan 19 - Purchased advertising on account for $700.
Jan 22 - Paid $700 for advertising purchased earlier.
Jan 25 - Made additional cash sales of $9,000; cost of goods sold was $5,000.
Jan 28 - Paid insurance expense of $600 cash.
Instructions:
Prepare the following in hand writing. Due date on 14/5/2025 in class:
Record the Journal Entries
Trial Balance
Income Statement
Statement of Financial Position
Closing Entries