Financial Accounting Journal Entries and Accounting Cycle Study Guide .pdf

Lizzie Incorporated General Journal http://www.youtube.com/etramway http://freefinancialaccountingtextbook.bl

JE# 1

2

Date

Account name/Description

1-Jan-10 Cash Common stock Sold common stock 30-Jun-10 Inventory Accounts payable

Debit

Credit

100 100

18,839 18,839

Purchased inventory on account 3

11-Jul-10 Note payable Cash

20,000 20,000

Sold 2 year note, interest payable annually at 10% 4

1-Jul-10 Property, plant and equipment Cash

5,800 5,800

Purchased equipment with 5 year life, no residual value 5

6

1-Jul-10 Prepaid insurance Cash Purchased 1 year liability policy 31-Aug-10 Cash Accounts payable

750 7 50

14,050 14,050

Paid a portion of Accounts payabl 7

30-Nov-10 Sales Accounts receivable

21,000 21,000

Sold product on account 8

31-Dec-10 Cash Accounts receivable Received partial payment on accounts re

14,500 14,500

9

31-Dec-10 Inventory Cost of goods sold Periodic inventory, physical count is zero

http://www.youtube.com/etramway DEA LOR Watch our Introduction to Financial  Accounting video http://www.youtube.com/watch? v=l2mFEBrfRWw Watch our Financial Statements Preparation Video http://www.youtube.com/watch? v=LsOGkKbZvlg&feature=channel

18,839 18,839

Lizzie Incorporated General Ledger  http://www.youtube.com/ http://freefinancialaccountin

Cash 1-1/1

100

3-7/1

20000

4-7/1

Common Stock  1-1/1

18839

9-12/31

18839

750

6-8/31

14050

8-12/31

14500

Balance 12/31

14000

Balance 12/31

Accounts payable 2-6/30

18839

100

Balance 12/31

 Note Payable

0

Property, plant & equi

3-7/1

20000

4-7/1

5800

Balance 12/31

20000

Balance 12/31

5800

14050

Balance 12/31

4789

Prepaid Insurance 5-7/1

Inventory 2-6/30

5800

5-7/1

6-8/31

100

750

Sales 7-11/30

Accounts Receivable 21000

7-11/30

21000

9-12/31

Balance 12/31

750

Balance 12/31

21000

Balance 12/31

14500

6500

Retained earnings

Balance 12/31

DEA LOR Watch our  Introduction to Financial  Accounting video http://www.youtube. com/watch? v=l2mFEBrfRWw

Watch our Financial Statements Preparation Video http://www.youtube. com/watch? v=LsOGkKbZvlg&fea

Dividends

0

Balance 12/31

0

Cost of goods sold 8-12/31

18839

Balance 12/31

18839

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Lizzie Incorporated List of Accounts  balances at 12/31/201 http://freefinancialaccou

Account name Cash Accounts receivable Prepaid insurance Property, plant and equipment, net Accounts payable Long-term Notes Payable Common stock Retained earnings Sales Dividends Cost of goods sold Total

DEA

LOR

Watch our Introduction to Financial Accounting video http://www.youtube.com/watch?v=l2mFEBrfRWw Watch our Financial Statements Preparation Video http://www.youtube.com/watch? v=LsOGkKbZvlg&feature=channel

Amount 14,000 6,500 750 5,800 4,789 20,000 100 0 21,000 0 18,839 91,778

Account type

Debit or Cre

Asset-current Asset-current Asset-current Asset-non-current Liability-current Liability-non-current Owners' Equity Owners' Equity Revenue Dividends Expense

Debit Debit Debit Debit Credit Credit Credit Credit Credit Debit Debit

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Lizzie Incorporated Trial Balance at 12/31/2010 http://freefinancialacco

Account name Cash Accounts receivable Prepaid insurance Property, plant and equipment, net Accounts payable Long-term debt Common stock Retained earnings Sales Dividends Cost of goods sold Total

DEA

Amount

Debit 14,000 6,500 750 5,800 4,789 20,000 100 0 21,000 0 18,839

4,789 20,000 100 0 21,000 0 18,839 45,889

LOR

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Credit

14,000 6,500 750 5,800

45,889

Lizzie Incorporated Income Statement For the Year Ended 12/31/2010

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Revenue (Net Sales)

http://freefinancialaccountingtextbook.blogspot.com/20 21,000

Cost of goods sold

18,839

Net Income

2,161

DEA

LOR

Watch our Introduction to Financial Accounting video http://www.youtube.com/watch?v=l2mFEBrfRWw Watch our Financial Statements Preparation Video http://www.youtube.com/watch? v=LsOGkKbZvlg&feature=channel

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Beginning Retained earning

Lizzie Incorporated Statement of Retained Earnings For the Year Ended 12/31/2010 http://freefinancialaccountingtextbook.blogspot.com/ 0

Plus: Net Income

2,161

Less: Dividends

0

Ending Retained Earnings

2,161

DEA

LOR

Watch our Introduction to Financial Accounting video http://www.youtube.com/watch?v=l2mFEBrfRWw Watch our Financial Statements Preparation Video http://www.youtube.com/watch? v=LsOGkKbZvlg&feature=channel

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Lizzie Incorporated Classified Balance Sheet at 12/31/2010 http://freefinancialaccountingtex

Assets Cash Accounts receivable Prepaid insurance Current Assets Property, plant and equipment, Total Assets

14,000 6,500 750 21,250 5,800 27,050

Liabilities Accounts payable

4,789

Long-term debt

20,000

Total Liabilities

24,789

Stockholders' Equity Common stock Ending Retained earnings

100 2,161

Total Stockholders' Equity

2,261

Total Liabilities and Stockholders' Equity

DEA LOR Watch our Introduction to Financial  Accounting video http://www.youtube.com/watch? v=l2mFEBrfRWw Watch our Financial Statements Preparation Video

27,050

http://www.youtube.com/watch? v=LsOGkKbZvlg&feature=channel