Magnus Construction Supplies

GENERAL JOURNAL
For the Month Ended in June 2018

Page 1
DATE PARTICULARS PR DEBIT CREDIT
2018
June 1 Cash 101 300,000
C. Magnus, Capital 301 300,000
To record initial investments
#
Purchases 505 120,000
Accounts Payable 201 120,000
To record purchase of merchandise
on account from Victor Enterprises.
#
2 Accounts Receivable 112 90,000
Sales 401 90,000
To record sales on account sold
#
3 Freight-out 601 8,000
Cash 101 8,000
To record freight on June 2 sale
#
4 Cash 101 900,000
Loan Payable 202 900,000
To record additional investment
#
5 Accounts Payable 201 4,000
Purchase Returns and Allowances 506 4,000
To record merchandise returned
#
6 Transportation Vehicle 130 600,000
Cash 101 600,000
To record acquired delivery in cash
#
9 Cash 101 88,200
Sales Discount 414 1,800
Accounts Receivable 112 90,000
To record collection of account
#
10 Accounts Payable 201 116,000
Purchase Discount 507 2,320
Cash 101 113,680
To record payment for account
#
11 Prepaid Supplies 126 18,000
Cash 101 18,000
To record purchased supplies
#
12 Purchases 120 48,000
Cash 101 48,000
To record purchase of merchandise
#
15 Cash 101 4,600
Purchase Returns and Allowances 506 4,600
Page 2
DATE PARTICULARS PR DEBIT CREDIT
To record allowances received
#
17 Salaries Expense 602 24,000
Cash 101 24,000
To record payment of salaries
#
19 Purchases 505 38,000
Accounts Payable 201 38,000
To record purchases of merchandise
#
24 Cash 101 216,000
Sales 401 216,000
To record cash sales
#
25 Purchases 505 20,000
Accounts Payable 201 20,000
To record purchases of merch. on acc.
#
26 Freight-in 508 4,000
Cash 101 4,000
To record payment of delivery
#
27 Accounts Payable 201 38,000
Purchase Discount 507 760
Cash 101 37,240
To record payment of account
#
29 Sales Returns and Allowances 412 2,000
Cash 101 2,000
To record allowances
#
30 Rent Expense 603 50,000
Utilities Expense 604 10,000
Salaries Expense 602 20,000
Cash 101 80,000
To record payment of expenses
#
30 Accounts Receivable 112 18,000
Sales 401 18,000
To record sales on account
#
30 C. Magnus, Drawing 302 100,000
Cash 101 100,000
To record owner’s withdrawal
 Magnus Construction Supplies
GENERAL LEDGER
For the Month Ended June 2018

101.00 Cash BALANCE

DATE PARTICULARS PR DEBIT CREDIT DEBIT CREDIT
2,018.00
June ### Initial investment 300,000.00 300,000.00
### Delivery expense 8,000.00 292,000.00
### Bank loan 900,000.00 1,192,000.00
### Acquired vehicle 600,000.00 592,000.00
### Collection of account 88,200.00 680,200.00
### Payment of account 113,680.00 566,520.00
### Purchased supplies 18,000.00 548,520.00
### Purchase of merchandise 48,000.00 500,520.00
### Refund from Suppliers 4,600.00 505,120.00
### Payment of salaries 24,000.00 481,120.00
### Cash sales 216,000.00 697,120.00
### Payment of delivery 4,000.00 693,120.00
### Payment of account 37,240.00 655,880.00
### Refund to Customers 2,000.00 653,880.00
### Payment of expenses 80,000.00 573,880.00
### Owner’s withdrawal 100,000.00 473,880.00

112.00 Accounts Receivable BALANCE

DATE PARTICULARS PR DEBIT CREDIT DEBIT CREDIT
2,018.00
June ### Sales on account 90,000.00 90,000.00
### Payment on discount 90,000.00 -
### Sales on account 18,000.00 18,000.00

120.00 Merchandise Inventory BALANCE

DATE PARTICULARS PR DEBIT CREDIT DEBIT CREDIT
2,018.00
June ### Closing Entry 80,000.00 80,000.00

126.00 Prepaid Supplies BALANCE

DATE PARTICULARS PR DEBIT CREDIT DEBIT CREDIT
2,018.00
June ### Purchased Supplies 18,000.00 18,000.00

130.00 Transportation Vehicle BALANCE

DATE PARTICULARS PR DEBIT CREDIT DEBIT CREDIT
2,018.00
June ### Acquired Vehicle 600,000.00 600,000.00

201.00 Accounts Payable BALANCE

DATE PARTICULARS PR DEBIT CREDIT DEBIT CREDIT
2,018.00
June ### Merchandise purchased on account 120,000.00 120,000.00
### Refund from Suppliers 4,000.00 116,000.00
### Payment of account 116,000.00 -
### Purchases of merchandise 38,000.00 38,000.00
### Purchases of merchandise on account 20,000.00 58,000.00
### Payment of account 38,000.00 20,000.00

202.00 Loan Payable BALANCE

DATE PARTICULARS PR DEBIT CREDIT DEBIT CREDIT
2,018.00
 June ### Bank loan 900,000.00 900,000.00

301.00 C. Magnus, Capital BALANCE

DATE PARTICULARS PR DEBIT CREDIT DEBIT CREDIT
2,018.00
June ### Initial investment 300,000.00 300,000.00
### Closing Entry 69,880.00 369,880.00
### Closing Entry 100,000.00 269,880.00

302.00 C. Magnus, Drawing BALANCE

DATE PARTICULARS PR DEBIT CREDIT DEBIT CREDIT
2,018.00 2,018.00
June ### owner's withdrawal 100,000.00 100,000.00
### Closing Entry 100,000.00 0

401.00 Sales BALANCE

DATE PARTICULARS PR DEBIT CREDIT DEBIT CREDIT
2,018.00
June ### Sales on account 90,000.00 90,000.00
### Cash sales 216,000.00 306,000.00
### Sales on account 18,000.00 324,000.00
### Closing Entry 324,000.00 0

412.00 Sales Returns and Allowances BALANCE

DATE PARTICULARS PR DEBIT CREDIT DEBIT CREDIT
2,018.00
June ### Allowances for returns 2,000.00 2,000.00
### Closing Entry 2,000.00 0

414.00 Sales Discount BALANCE

DATE PARTICULARS PR DEBIT CREDIT DEBIT CREDIT
2,018.00
June ### Payment on discount 1,800.00 1,800.00
### Closing Entry 1,800.00 0

505.00 Purchases BALANCE

DATE PARTICULARS PR DEBIT CREDIT DEBIT CREDIT
2,018.00
June ### Merchandise purchased on account 120,000.00 120,000.00
### Purchase of merchandise 48,000.00 168,000.00
### Purchase of merchandise 38,000.00 206,000.00
### Purchase of merchandise on account 20,000.00 226,000.00
### Closing Entry 226,000.00 0

506.00 Purchase Returns and Allowances BALANCE

DATE PARTICULARS PR DEBIT CREDIT DEBIT CREDIT
2,018.00
June ### Returned merchandise 4,000.00 4,000.00
### Allowances received 4,600.00 8,600.00
### Closing Entry 8,600.00 0

507.00 Purchase Discounts BALANCE

DATE PARTICULARS PR DEBIT CREDIT DEBIT CREDIT
2,018.00
June ### Payment of account 2,320.00 2,320.00
 ### Payment of account 760.00 3,080.00
### Closing Entry 3,080.00 0

508.00 Freight-in BALANCE

DATE PARTICULARS PR DEBIT CREDIT DEBIT CREDIT
2,018.00
June ### Payment of delivery 4,000.00 4,000.00
### Closing Entry 4,000.00 0

601.00 Freight-out BALANCE

DATE PARTICULARS PR DEBIT CREDIT DEBIT CREDIT
2,018.00
June ### Delivery Expense 8,000.00 8,000.00
### Closing Entry 8,000.00 0

602.00 Salaries Expense BALANCE

DATE PARTICULARS PR DEBIT CREDIT DEBIT CREDIT
2,018.00
June ### Payment of Salaries 24,000.00 24,000.00
### Payment of expenses 20,000.00 44,000.00
### Closing Entry 44,000.00 0

603.00 Rent Expense BALANCE

DATE PARTICULARS PR DEBIT CREDIT DEBIT CREDIT
2,018.00
June ### Payment of expenses 50,000.00 50,000.00
### Closing Entry 50,000.00 0

604.00 Utilities Expense BALANCE

DATE PARTICULARS PR DEBIT CREDIT DEBIT CREDIT
2,018.00
June ### Payment of expenses 10,000.00 10,000.00
### Closing Entry 10,000.00 0

400.00 INCOME SUMMARY BALANCE

DATE PARTICULARS PR DEBIT CREDIT DEBIT CREDIT
2,018.00
June ### Closing Entry 400,200.00 400,200.00
### Closing Entry 330,320.00 69,880.00
### Closing Entry 69,880.00 0
 Magnus Construction Supplies
Trial Balance
30-Jun-18

PARTICULARS DEBIT CREDIT

101 Cash 473,880.00
112 Accounts Receivable 18,000.00
120 Merchandise Inventory
126 Prepaid Supplies 18,000.00
130 Transportation Vehicle 600,000.00
201 Accounts Payable 20,000.00
202 Loan Payable 900,000.00
301 C. Magnus, Capital 300,000.00
302 C. Magnus, Drawing 100,000.00
401 Sales 324,000.00
412 Sales Returns and Allowances 2,000.00
414 Sales Discount 1,800.00
505 Purchases 226,000.00
506 Purchase returns and allowances 8,600.00
507 Purchase discount 3,080.00
508 Freight in 4,000.00
601 Freight Out 8,000.00
602 Salaries Expense 44,000.00
603 Rent Expense 50,000.00
604 Utilities Expense 10,000.00
1,555,680.00 1,555,680.00
 Magnus Construction Supplies
Statement of Cost of Goods Sold
For the month Ended June 2018
Merchandise Inventory, beginning 0
Add: Net Purchases
Purchases 226,000.00
Purchase Returns and Allowances (8,600.00)
Purchase Discounts (3,080.00)
Freight In 4,000.00 218,320.00
Cost of Goods Available for Sale 218,320.00
Less: Merchandise Inventory, end 80,000.00
Cost of Goods Sold 138,320.00
 Magnus Construction Supplies
Statement of Financial Performance
For the Month Ended in June 2018
Gross Sales 324,000.00
Less: Sales Returns and Allowances 2,000.00
Sales Discount 1,800.00 3,800.00
Net Sales 320,200.00
Less: Cost of Goods Sold 138,320.00
Gross Profit 181,880.00
Less: Expenses
Salaries Expense 44,000.00
Rent Expense 50,000.00
Utilities Expense 10,000.00
Freight Out 8,000.00 112,000.00
Net Profit 69,880.00
 Magnus Construction Supplies
Statement of Changes in Owner's Equity
For the Month Ended June 2018

C. Magnus, Capital beginning -

Add: Investments 300,000.00

Net Income 69,880.00 369,880.00
Less: Withdrawals 100,000.00

C. Magnus, Capital end 269,880.00

 Magnus Construction Supplies
Statement of Financial Position
As of June 30, 2018

ASSETS

Cash 473,880.00
Accounts Receivable 18,000.00
Merchandise Inventory 80,000.00
Prepaid Supplies 18,000.00 589,880.00
Non-Current Assets
Equipment 600,000.00

TOTAL ASSETS 1,189,880.00

LIABILITIES & OWNER'S EQUITY

LIABILITIES
Current Liabilities
Accounts Payable 20,000.00

Non-Current Liabilities
Loan Payable 900,000.00
TOTAL LIABILITIES 920,000.00
OWNER'S EQUITY
C. Magnus, Capital 269,880.00

TOTAL LIABILITIES & OWNER'S EQUITY 1,189,880.00

 Magnus Construction Supplies
Statement of Cash Flow
For the Month Ended June 2018

Cash Flow from Operating Activities

Cash Sales 216,000.00
Collection of accounts 88,200.00
Payment of freight-out (8,000.00)
Payment of Accounts Payable (150,920.00)
Purchase of supplies (18,000.00)
Purchase of merchandise (48,000.00)
Refund from supplier for returned merchandise 4,600.00
Payment for salaries (44,000.00)
Payment for freight-in (4,000.00)
Refund to customer for returned merchandise (2,000.00)
Payment for rent (50,000.00)
Payment for utilities (10,000.00)
Net Cash Flow from Operating Activities (26,120.00)

Cash Flow from Investing Activities

Purchase of equipment (600,000.00)
Net Cash Flow from Investing Activities

Cash Flow from Financing Activities

Initial Investment 300,000.00
Proceeds from bank loan 900,000.00
Withdrawals (100,000.00)
Net Cash Flow from Financing Activities 1,100,000.00

Total Cash Flow from Operating, Investing & Financing 473,880.00

Add: Cash balance, beginning -
Ending Cash Balance, May 2017 473,880.00
 GENERAL JOURNAL - CLOSING ENTRIES

Page 4 CLOSING ENTRIES

DATE PARTICULARS PR DEBIT CREDIT
2018
June 30 Sales 324,000.00
Sales Returns and Allowances 2,000.00
Sales Discounts 1,800.00
Income Summary 320,200.00
To close Net Sales to Income Summary
#
30 Purchase Returns and Allowances 8,600.00
Purchase Discounts 3,080.00
Income Summary 218,320.00
Purchases 226,000.00
Freight In 4,000.00
To close Net Purchases to Income Summary
#
30 Merchandise Inventory, end 80,000.00
Income Summary 80,000.00
To establish ending inventory
#
30 Income Summary 112,000.00
Salaries Expense 44,000.00
Utilities Expense 10,000.00
Rent Expense 50,000.00
Freight Out 8,000.00
To close Expenses to Income Summary
#
30 Income Summary 69,880.00
C. Magnus, Capital 69,880.00
To close the Income Summary acct.
#
30 C. Magnus, Capital 100,000.00
C. Magnus, Drawing 100,000.00
To close the Withdrawal acct.
#
 Magnus Construction Supplies
Trial Balance
June 30,2018

PARTICULARS DEBIT CREDIT

101 Cash 473,880.00
112 Accounts Receivable 18,000.00
120 Merchandise Inventory 80,000.00
126 Prepaid Supplies 18,000.00
130 Transportation Vehicle 600,000.00
201 Accounts Payable 20,000.00
202 Loan Payable 900,000.00
301 C. Magnus, Capital 269,880.00
Total 1,189,880.00 1,189,880.00