Closing out books after a sale?

Discussion in 'Accounting' started by ACR1875, Mar 14, 2013.

  1. ACR1875

    ACR1875

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    Location:
    South Florida
    Question is if this company sold this business in consideration for $8000 - entries to apply the $8000

    Would go against - Cash Dr 8000
    Inventory Cr 5228
    A/R Cr 2977
    loss on sale 206

    To close out the G/L would I take the cash which is 8000+2162.75 = 10,162.75
    of offset the A/P and offset the balance to retained earnings?

    ASSETS
    Current Assets
    Checking/Savings
    10000 · Bank Atlantic 2,162.75
    Total Checking/Savings 2,162.75
    Accounts Receivable
    11000 · Accounts Receivable -22.25
    11001 · Note Receivable - SI 3,000.00
    Total Accounts Receivable 2,977.75
    Other Current Assets
    12100 · *Inventory Asset 5,228.84
    Total Other Current Assets 5,228.84
    Total Current Assets 10,369.34
    TOTAL ASSETS 10,369.34
    LIABILITIES & EQUITY
    Liabilities
    Long Term Liabilities
    25501 · Notes Payable - 6,000.00
    25502 · Note Payable - 12,553.12
    Total Long Term Liabilities 18,553.12
    Total Liabilities 18,553.12
    Equity
    30100 · Capital Stock 100.00
    30200 · Capital paid in -1,300.00
    30201 · Capital Paid in -558.37
    32000 · Retained Earnings -9,401.37
    Net Income -740.78
    Total Equity -8,183.78
    TOTAL LIABILITIES & EQUITY 10,36
     
    ACR1875, Mar 14, 2013
    #1
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