FirstRate Company and subsidiaries
General Journal
(U.S. dollars in thousands)
(Assumes company does NOT use special journals, such as sales journal, purchases journal, cash journal, or payroll journal)
Date		General ledger accounts / Explanation			Debit		Credit
Dec. 31, 20X5
Dr.	Accounts receivable, gross				800
	Cr.	Sales revenue (gross)					800
Explanation: To record credit sales for the last few days of 20X5
Dec. 31, 20X5
Dr.	Cost of goods sold (COGS) - other				600
	Cr.	Inventory, at lower of cost or market					600
Explanation: To record cost of sales for the last few days of 20X5
Dec. 31, 20X5
Dr.	Cash and cash equivalents				700
	Cr.	Accounts receivable, gross					700
Explanation: To record collections of accounts receivables for the last week of 20X5
Dec. 31, 20X5
Dr.	Allowance for uncollectible accounts receivable				200
	Cr.	Accounts receivable, gross					200
Explanation: To record write-off of AR outstanding more than 6 months as of Dec. 28, 20X5
Dec. 31, 20X5
Dr.	Selling and administrative expenses - other				200
	Cr.	Cash and cash equivalents					200
Explanation: To record payment of employee 20X5 bonuses, declared by board on Dec. 28, 20X5
Dec. 31, 20X5
Dr.	Inventory, at lower of cost or market				500
	Cr.	Accounts payable					500
Explanation: To record purchases of raw materials during last week of 20X5 on credit (terms net 30 days)
Total debits and credits					3,000		3,000
FirstRate Company and subsidiaries
Trial Balance Fiscal Year 20X5
(U.S. dollars in thousands)
			FYE Dec. 31, 20X4	FYTD Dec. 24, 20X5	JEs Final Week of 20X5		FYE Dec. 31, 20X5
General ledger (GL) account					Debits	(Credits)
Cash and cash equivalents		Debit	2,100	600			600
Investment securities available for sale (market value)		Debit	20,200	21,700			21,700
Accounts receivable, gross		Debit	78,000	94,600
							94,600
Allowance for uncollectible accounts receivable		Credit	(2,700)	(3,800)			(3,800)
Inventory, at lower of cost or market		Debit	137,600	160,100			160,100
Property, plant, and equipment, at cost		Debit	292,500	266,700			266,700
Accumulated depreciation on PP&E		Credit	(129,700)	(105,200)			(105,200)
Accounts payable		Credit	(81,600)	(96,700)			(96,700)
Accrued income taxes payable		Credit	(2,300)	(1,800)			(1,800)
Dividends payable on common stock		Credit	(19,800)	(16,000)			(16,000)
Bank note payable - current portion		Credit	(89,800)	(113,900)			(113,900)
Bank note payable - noncurrent portion		Credit	(52,700)	(55,400)			(55,400)
Accrued interest payable		Credit	(2,500)	(3,100)			(3,100)
6% Preferred stock, at par value		Credit	(20,000)	(20,000)			(20,000)
Common stock, at par value		Credit	(42,700)	(42,700)			(42,700)
Additional paid-in capital (APIC)		Credit	(8,300)	(8,300)			(8,300)
Treasury stock		Debit	1,100	1,100			1,100
Accum. other comprehensive income (loss)		Dr (Cr)	200	(1,300)			(1,300)
Retained earnings - beginning of year		Credit	(82,500)	(79,600)			(79,600)
Dividends declared on preferred stock - current year		Debit	1,200	1,200			1,200
Dividends declared on common stock - current year		Debit	19,800	16,000			16,000
Sales revenue (gross)		Credit	(674,200)	(742,300)			(742,300)
Sales returns and allowances		Debit	12,800	16,300			16,300
Cost of goods sold (COGS) - depreciation		Debit	11,400	10,000			10,000
Cost of goods sold (COGS) - other		Debit	469,400	523,600			523,600
Selling and administrative expenses - depreciation		Debit	600	500			500
Selling and administrative expenses - other		Debit	109,200	122,900			122,900
Research and development (R&D) expenses		Debit	23,800	24,000			24,000
Other operating expenses		Debit	9,900	12,300			12,300
Gain on disposal of PP&E		Credit	-	(1,100)			(1,100)
Loss on disposal of PP&E		Debit	-	-			-
Interest on bank note		Debit	9,900	12,500			12,500
Income tax provision		Debit	9,100	7,100			7,100
Loss from discontinued oper., (before tax effect)		Debit	-	-			-
Extraordinary loss (before tax effect)		Debit	-	-			-
Total debits (credits)			-	-	-	-	-
Net balance of nominal (or, temporary) accounts			(18,100)	(14,200)	-