Hasees Guitar Shop, Incorporation

General Journal
For the year ended: 2010
Date Description P.R Debit Credit
1 Cash 10,000
Stock 10,000
Forms Corporation by purchasing shares
2 Entry Not Required
3 LeaseHold Improvements 1,00,000
Lonr Term Liabilities 1,00,000
Take bank loan and made improvements on front hall
4 Inventory 50,000
Accounts Payable 50000
Purchase inventory on credit
5 Rent Expense 500
Cash 500
Paid rent for fronthall
6 Cash 500
Cost of goods sold 100
Revenues 500
Inventory 100
Sale of Inventory (Guitar)
7 Accounts Receiveable 300
Cost of goods sold 100
Revenues 300
Inventory 100
Sale of Inventory (Guitar)
8 Electricity Bill Expense 200
Cash 200
Paid Electricity bill
9 Supplies Expense 500
Cash 500
Supplies Purchased
10 Wages Expense 500
Cash 500
Paid Wages to employees
11 Accounts Payable 1000
Cash 1000
Payment of inventory made to vendor
12 Cash 2000
Lesson Income 2000
Income received from guitar lessons
13 Long term Liabilities 500
Interest Expense 500
Cash 1000
 Paid Bank loan and interest expense
14 Cash 25,000
Cost of goods sold 10,000
Revenues 25,000
Inventory 10000
Cash sales of Inventory
15 Dividend 1000
Cash 1000
Dividend paid in December
 Hasees Guitar Shop Incorporation
Adjusted Entries
For The Year Ended : 2010
Date Desrciption P.R Debit Credit
1 Prepaid Rent 1000
Rent Expense 1000
Paid Rent of Janauary in advance
2 Electricity Bill Expense 200
Accrued Electricity Bill 200
December Electricity Bill due in Janauary
3 Depreciation Expense 2000
Accumulated Depreciation 2000
LeaseHold Improvement is depreciated.
4 Service Revenue 1000
Unearned Revenue 1000
Customer paid for next 6 months..
5 Wages Expense 250
Accrued Wages Expense 250
Hasees paid half week wages to employee.
 Hasees Guitar Shop Incorporation
Ledger Accounts
For The Year Ended : 2010
1. Cash Account
Date Description L.f Amount Date Description L.f Amount
1 Stock 10,000 5 Rent Expense 500
6 Revenues 500 8 Electricity Bill Expense 200
12 Lesson Income 2000 9 Supplies Expense 500
14 Revenues 25,000 10 Wages Expense 500
11 Accounts Payable 1000
13 Long Term Liabilities 500
13 Interest Expense 500
15 Dividend 1000
Balance 32800
37500 37500

2. Accounts Receivable Account

Date Description L.f Amount Date Description L.f Amount
7 Revenues 300
Balance 300
300 300

3. Inventory Account
Date Description L.f Amount Date Description L.f Amount
4 Accounts Payable 50000 6 Cost of goods sold 100
7 Cost of goods sold 100
14 Cost of goods sold 10,000
Balance 39800
50,000 50,000

4. LeaseHold Improvement Account

Date Description L.f Amount Date Description L.f Amount
3 Long Term Liabilities 1,00,000
Balance 1,00,000
1,00,000 1,00,000

5. Accounts Payable Account

Date Description L.f Amount Date Description L.f Amount
11 Cash 1000 4 Inventory 50,000
Balance 49000
50000 50,000

6.Long Term Liabilities Account

Date Description L.f Amount Date Description L.f Amount
13 Cash 500 3 LeaseHold Improvement 1,00,000
Balance 99500
1,00,000 1,00,000
 7.Stock Account
Date Description L.f Amount Date Description L.f Amount
1 Cash 10,000
Balance 10,000
10,000 10,000
 8. Dividene Account
Date Description L.f Amount Date Description L.f Amount
15 Cash 1000
Balance 1000
1000 1000

9.Revenues Account
Date Description L.f Amount Date Description L.f Amount
6 Cash 500
7 Accounts Receivable 300
Balance 27,800 12 Lesson Income 2000
14 Cash 25,000
27,800 27,800

10. Cost Of Godds Sold Account

Date Description L.f Amount Date Description L.f Amount
6 Inventory 100
7 Inventory 100 Balance 10,200
14 Inventory 10,000
10,200 10,200

11. Rent Expense Account

Date Description L.f Amount Date Description L.f Amount
5 Cash 500
Balance 500
500 500

12. Supplies Expense Account

Date Description L.f Amount Date Description L.f Amount
9 Cash 500
Balance 500
500 500

13. Eletricity Bill Account

Date Description L.f Amount Date Description L.f Amount
8 Cash 200
Balance 200
200 200

14. Wages Expense Account

Date Description L.f Amount Date Description L.f Amount
10 Cash 500
Balance 500
500 500

15. Interest Expense Account

Date Description L.f Amount Date Description L.f Amount
13 Cash 500
Balance 500
500 500
 Hasees Guitar Shop Incorporation
Unadjusted Traial Balnce
For The Year Ended : 2010
Sr. No. Title of Account L.f Debit Credit
1 Cash 32,800
2 Account Raceivable 300
3 Inventory 39,800
4 LeasHold Improvement 100000
5 Accont Payable 49,000
6 Long Term Liabilities 99,500
7 Stock 10,000
8 Dividend 1000
9 Revenues 27,800
10 Cost of Goods sold 10,200
11 Rent Expense 500
12 Supplies Expense 500
13 Electricity Bill 200
14 Wages 500
15 Interest 500
Total 186300 186300
 Hasees Guitar Shop Incorporation
Unadjusted Traial Balnce
For The Year Ended : 2010
Sr. No. Title of Account L.f Debit Credit
1 Cash 32,800
2 Accounts Receivable 300
3 Prepaid Rent 1000
7 Accounts Payable 49,000
8 Accrued Expenses:
Utitlity Bill 200
Wages 250 450
9 Unearned Revenue 1000
10 Long Term Liabilities 99,500
11 Stock 10,000
12 Dividend 1000
13 Revenues 27,800
14 Cost of Goods sold 10,200
15 Depriciation Expense 2000
16 Rent Expense 500
17 Supplies Expense 500
18 Electricity Expense 400
19 Wages Expense 750
20 Interest Expense 500
Total 1,89,750 1,89,750
 Hasees Guitar Shop Incorporation
Income Statement
For The Year Ended : 2010
Descriiption Amount Amount Amount
Revenues From Sales:
Revenue 27,800

Cost of Goods sold:

Less: Cost of goods Sold 10,200
Grooss Profit 17600
Operating Expense:
Depreciation Expense 2000
Wages Expense 500
Add: Wages paid for half week 250 750
Rent Expense 500
Supplies Expense 500
Electricity Bill 400
Total Operating Expense -4150
Operating Income/ EBIT 13450
Less: Interest Expense -500
Net Profit 12950
 Hasees Guitar Shop Incorporation
Balance Sheet
For The Year Ended: 2010
Description Amount Amount Amount
Current Assets:
Cash 32800
Account Receivable 300
Prepaid Rent 1000
Dividend 1000
Inventory 39800
Total Current Asset 74900

Long Term Assets:

LeaseHold Improvements 100000
Total Long Term Assets 100000
Total Assets 174900

Current Liabilities:
Account Payable 49000
Accumulated Depreciation 2000
Accrued Expense 450
Unearned Revenue 1000
Total Current Liabilities 52450
Long Term Liabilities:
Long Term Liabilities 99500

Owner's Equity:
Stock 10000
Net Income 12950
Total Liabilities 174900