ACCTG 180 W07 Final Exam worksheet.xlsx | Fall 2025/2026 Update | 100% Correct.

You have decided to take your experience working with Jones Surf Shop and Pacific Surfboard and start a consul
Playtime, inc. Playtime's primary business is buying and selling swingsets. The following balance were taken from
August.


Playtime, Inc
Trial Balance
30-Jul
Account Title Debit Credit
Accounts Payable $ 35,619
Accounts Receivable $ 27,800
Accumulated Depreciation $ 11,000
Advertising Expense $ 8,950
Cash $ 198,375
Common Stock $ 50,000
Cost of Goods Sold $ 157,890
Depreciation Expense $ 7,000
Equipment $ 80,000
Interest Expense $ 4,361
Interest Payable $ -
Inventory $ 89,576
Notes Payable $ 141,742
Rent Expense $ 57,400
Retained Earnings $ 244,852
Revenue $ 278,950
Salaries Expense $ 125,300
Salaries Payable $ -
Sales Tax Payable $ 12,793
Supplies $ 7,865
Supplies Expense $ 12,489
Unearned Revenue $ 8,900
Utility Expense $ 6,850




During the month of August, Playtime experienced the following events - help them create the journal entry to r

A. August 1 - Purchased inventory on account for $57,750 - Terms are 10/2 Net 20

JOURNAL
Date Description Debit
August 1, 2025 Inventory $ 57,750
Accounts Payable

, Purchased Inventory


B August 1 - Collected $23,850 of cash from customers on account

JOURNAL
Date Description Debit
August 1, 2025 Cash $ 23,850
Accounts Receivable
Cash from customers on account

August 1 - Borrowed $30,000 of cash from the local bank by signing a 90-day note on August 20. The note
C principal and interest will be paid in full in 90 days

JOURNAL
Date Description Debit
August 1, 2025 Cash $ 30,000
Notes Payable
Borrowed cash by signing a 90-day note

D August 5 - Purchased equipment on account for $3,500, payment due Net 30.

JOURNAL
Date Description Debit
August 5, 2025 Equipment $ 3,500
Accounts Payable
Purchased Equipment on account

E. August 7 - Received $7500 for custom order not yet built

JOURNAL
Date Description Debit
August 7, 2025 Cash $ 7,500
Unearned Revenue
Custom order not yet built

F. August 7 - Pays a $850 utility bill with cash

JOURNAL
Date Description Debit
August 7, 2025 Utility Expense $ 850
Cash
utility bill paid

, G. August 10 - Distriubted $500 cash in dividends to stockholders

JOURNAL
Date Description Debit
August 10, 2025 Retained Earnings $ 500
Cash
Dividend payment

H. August 12 - Paid employee salaries of $8950

JOURNAL
Date Description Debit
August 12, 2025 Salaries Expense $ 8,950
Cash
Salary Payment


August 13 - Sold inventory on account for $85,000. This inventory cost Playtime $47,850. Playtime uses the
purchase and sale of inventory. These sales were subject to a 5% sales tax. This tax of $4250 is in addition t
I. amount addded to the accounts receivable for the company is $89,250 (which includes the sales price and

JOURNAL
Date Description Debit
August 13, 2025 Accounts Receivable $ 89,250
Revenue
Sales Tax Payable
sale and sales tax payable
Cost of Goods Sold $ 47,850
Inventory
Cost of Goods Sold (COGS) and Reduce inventor

J. August 15 - Paid inventory invoice from transaction A. This is being paid after the discount date.

JOURNAL
Date Description Debit
August 15, 2025 Accounts Payable $ 57,750
Cash
payment of inventory invoice

K August 18 - Paid state sales tax from Q2 - Total amount owed of $12,793

JOURNAL
Date Description Debit