This problem will utilize the OverPriced Jeans company (OPJ) from Problem 2-1. Use the Excel workbook Chapter 03 b - Problem 3-1 Forms to complete this problem. Notice that the beginning balances have...

This problem will utilize the OverPriced Jeans company (OPJ) from Problem 2-1. Use the Excel
workbook Chapter 03 b - Problem 3-1 Forms to complete this problem.
Notice that the beginning balances have been put into the General Ledger accounts. These
beginning account balances were the January ending account balances from Problem 2-1.

Requirement 1

For each of the following transactions make the required entries in the General Journal:
(See the General Ledger tab in the workbook Chapter 03 b - Problem 3-1 Forms for the accounts in OPJ’s
accounting system.)
Feb 01 Take $4,000 cash out of Big Bank to pay for February’s warehouse rent.
Feb 04 Sale of inventory to a customer – selling price $62,000 – cost of inventory sold
$16,000 – customer paid cash which was deposited in Big Bank.
Feb 07 Take $10,000 cash out of Little Bank to pay employees for wages they have earned.
Feb 15 Sale of inventory to a customer – selling price $88,000 – cost of inventory sold
$22,000 – customer will pay in the future.
Feb 18 Sale of inventory to a customer – selling price $110,000 – cost of inventory sold
$28,000 – customer pays $40,000 cash which is deposited in Little Bank – customer
will pay for the remaining amount of the sale in 30 days.
Feb 22 Purchase additional inventory – pay $17,000 cash out of Big Bank for the inventory.
Feb 27 Take $23,000 cash out of Little Bank to pay employees for wages they have earned.
Feb 28 Adjust the Interest Payable-Big Bank account to record the $600 of interest owed to
Big Bank for February – interest will be paid in June.
Feb 28 Adjust the Interest Payable-Little Bank account to record the $450 of interest owed
to Little Bank for February – interest will be paid in March.

Requirement 2

Post the entries from the General Journal to the General Ledger accounts.

Requirement 3

Compute an ending balance for each General Ledger account.

Requirement 4

Prepare a Trial Balance.

Requirement 5

Prepare the “What Caused the Change in Retained Earnings” report.

Requirement 6

Prepare OPJ’s Balance Sheet as of February 28, 2021.