1. Cash........................................... DR $14083
To Common Stock............................................ $14083
(Being Cash received from sale of common stock to shareholders)
2. Merchandise Inventory.............DR $878418
To Accounts Payable.................................... $878418
(Being Inventory purchased on account)
3. Cash................................ DR $11000
To Long Term Debt.................................... $11000
(Being Cash Borrowed)
4. Accounts Receivable.................. DR $1409068
To Sales.................................................................... $1409068
(Being Sales made on Account)
Cost of Goods Sold.................... DR $852316
To Merchandise Inventory................................ $852316
(Being Cost of goods sold recognised against sales made)
Dividends Payable............................... DR $ 22737
To Cash............................................................. $22737
(Being Dividends Paid)
Property, Plant and Equipment....................DR $19397
To Cash.......................................................................$19397
(Being additional Property, Plant and Equipment purchased in cash)
Selling Expense.........................DR $386540
To Cash........................................................... $ 289905
To Accounts Payable..................................$96635
(Being Selling Expenses incurred in cash and on account)
Cash............................DR $333
Interest Recievable...................DR $37
To Interest Income..........................................$ 370
(Being Interest Received in Cash and partly receivable later)
Interest Expense....................... DR $1395
To Interest Payable.................................................... $1395
(Being Interest Expense Accrued).
