✅
1. Detailed Transaction Record (Chronological)
# Description Debit (DR) Credit (CR) Account Type
1 Cash Sale Cash $8,000 Revenue $8,000 Revenue
2 Credit Sale A/R $6,000 Revenue $6,000 Revenue
3 Office Supplies Expense $200 Cash $200 Expense
4 Rent Expense $1,500 Cash $1,500 Expense
5 Bank Deposit Cash $3,000 - Asset
6 Sales Return Revenue -$100 A/R -$100 Contra Revenue
7 Purchase (on credit) Inventory $1,000 A/P $1,000 Asset & Liability
8 Utilities Expense $300 Cash $300 Expense
9 Travel Expense Expense $400 Cash $400 Expense
10 Cash Withdrawal Drawings $200 Cash $200 Equity (Owner Draw)
11 A/R Payment Received Cash $5,000 A/R $5,000 Asset
12 A/P Payment A/P $500 Cash $500 Liability
13 Inventory Purchase Inventory $2,000 Cash $2,000 Asset
14 Equipment Purchase Equipment $1,500 Cash $1,500 Asset
15 Bank Transfer Cash $2,500 Bank $2,500 Asset
16 Credit Sale A/R $4,000 Revenue $4,000 Revenue
17 Credit Card Payment Expense $1,000 Cash $1,000 Expense
18 Loan Payment Loan Payable $750 Cash $750 Liability
19 Insurance Insurance Exp. $200 Cash $200 Expense
20 Miscellaneous Expense Expense $100 Cash $100 Expense
21 Cash Sale Cash $3,000 Revenue $3,000 Revenue
22 A/R Payment Cash $2,000 A/R $2,000 Asset
23 Purchase (on credit) Inventory $800 A/P $800 Asset & Liability
24 Utilities Expense $250 Cash $250 Expense
25 Travel Expense Expense $350 Cash $350 Expense
26 Credit Sale A/R $5,000 Revenue $5,000 Revenue
27 Credit Card Payment Expense $1,500 Cash $1,500 Expense
28 Loan Payment Loan Payable $1,000 Cash $1,000 Liability
29 Insurance Premium Insurance Exp. $300 Cash $300 Expense
30 Miscellaneous Expense Expense $150 Cash $150 Expense
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2. Updated Ledger Summary
Assets
Cash:
= +8,000 + 3,000 + 5,000 + 2,500 + 3,000 + 2,000 - (200 + 1,500 + 300 + 400 + 200 +
2,000 + 1,500 + 1,000 + 750 + 200 + 100 + 500 + 250 + 350 + 1,500 + 1,000 + 300 +
150)
= $14,500
Accounts Receivable:
= +6,000 - 100 + 4,000 + 5,000 + 2,000 + 5,000 - (5,000 + 2,000)
= $10,900
Inventory:
= +1,000 + 2,000 + 800 = $3,800
Equipment:
= +$1,500
Bank:
= -$2,500 (since transferred to cash)
Liabilities
Accounts Payable:
= +1,000 + 800 - 500 = $1,300
Loan Payable:
= -750 - 1,000 = -$1,750
Equity
Drawings:
= $200
📊
3. Profit and Loss Calculation
Revenue
Cash Sales: 8,000 + 3,000 = $11,000
Credit Sales: 6,000 + 4,000 + 5,000 = $15,000
Sales Return: -100
Total Revenue: $25,900
Expenses
Office Supplies: 200
Rent: 1,500
Utilities: 300 + 250 = 550
Travel: 400 + 350 = 750
Credit Card Expenses: 1,000 + 1,500 = 2,500
Loan Payments (Interest portion assumed to be included): 750 + 1,000 = 1,750
Insurance: 200 + 300 = 500
Miscellaneous: 100 + 150 = 250
Total Expenses: $8,000
Net Profit = Revenue - Expenses = $25,900 - $8,000 = $17,900
🧾
4. Account Information Summary
Account Balance
Cash $14,500
Account Balance
Accounts Receivable $10,900
Inventory $3,800
Equipment $1,500
Accounts Payable $1,300
Loan Payable $1,750
Drawings (Owner Equity) $200
Net Profit $17,900
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5. Bookkeeping Evaluation & Feedback
✅ Strengths:
Detailed and Diverse Entries: Covers sales, expenses, liabilities, and assets.
Consistent Categorization: Transactions are properly grouped by type.
Profit Tracking: Profit goal ($4,792) is exceeded based on gross/net calculation.
⚠️Suggestions for Improvement:
Transaction 30 cutoff: The last line “Miscellaneous Exp Assets:$150.00” seems cut off or
unclear. Confirm the intent.
Bank Transfers: Label inter-account transfers more clearly (e.g., from bank to cash).
Loan Payment Detail: Consider separating interest and principal for precise accounting.
Drawings vs. Expenses: Ensure that cash withdrawals by owners are clearly labeled as
drawings, not operating expenses.
✅ Verdict:
The bookkeeping is clear, methodical, and nearly standard-compliant. Minor refinements are
recommended, but it meets the required standards for daily financial tracking.