1. CREATE JOURNAL ENTRIES FOR THE November 2019 TRANSACTIONS BELOW FOR SUNFLOWER DESIGNS: a. On November 1, $350 of office supplies was purchased on credit; the terms of the invoice were net 30. All of the supplies were used during the month of November. b. On November 1, a computer laptop was purchased on credit totaling $2,000. The estimated useful life of the computer is three (3) years and is expected to have no salvage value. The invoice terms were 2/10, net 30. c. On November 2, a 24-month liability insurance policy was purchased to cover Sunflower Designs. The full cost of the policy, $3,600, was paid in cash on the same date. d. On November 4, payroll checks were issued for the wages payable balance. e. On November 5, Sunflower Designs purchased $4,000 worth of inventory items for resale. These items were purchased on credit and the invoice term is 2/10, net 30. f. On November 9, a check was issued to pay for the inventory purchased on November 5. g. On November 10, Sunflower Designs paid for the office supplies purchased on credit on November 1. h. On November 12, Sunflower Designs completed and delivered an interior design layout to a customer for $6,980. The customer had paid for the services in advance in a previous month, and Sunflower Designs had appropriately recorded the deposit. i. On November 14, Sunflower Designs completed, delivered, and billed an interior design layout for $18,500 to a new customer. The terms of the invoice were 2/10, net 30. j. On November 14, Sunflower Designs paid $2,850 in wages to a temporary employee. On the same date, the company remitted payroll taxes of $880, previously accrued, to the appropriate government entities. k. On November 18, Sunflower Designs received a refund of $45 from their office supply vendor for items that were returned on the November 1 purchase. 1. On November 20, a customer paid the balance due for an interior design layout. The invoice for these services was sent to the customer on July 20, 2019. The contract price was $4,450. m.On November 24, Sunflower Designs sold a side table from inventory for $990. The inventory cost for this item was $430. The customer paid cash for this purchase. n. On November 26, $435 worth of inventory was returned to supplier because of defects. The inventory had been purchased on account in August and had not been paid for. o. On November 30, the customer delivered a check for one-half of the interior design invoice delivered on November 14. 2. CREATE THE NOVEMBER 30, 2019 UNADJUSTED TRIAL BALANCE 3. CREATE ADJUSTING JOURNAL ENTRIES FOR NOVEMBER 30, 2019: p. Record the depreciation for the laptop purchased on November 1. q. Record the November 2019 depreciation for all computers & software owned before the November 1 purchase. These items are being depreciated over 3 years using the straight- line method with no salvage value. r. Record the November 2019 depreciation for the furniture & fixtures. These items are being depreciated over 7 years using the straight-line method with no salvage value. s. Record the adjusting entry for November's rent. Sunflower Designs paid $4,800 in advance for 6 months' rent on September 1, 2019. All previous months' adjusting entries were made as required. t. Record the adjusting entry for the consumption of prepaid insurance for the month of November. The preexisting policy has 41-months remaining as of November 1, and recall that the new policy provides coverage for 24-months. The previous months' adjusting entries were made as required. u. Record the amount due to employees for time worked during November, but not paid. The amount earned by the employees was $5,100. The payroll taxes should be accrued at 20% of the wages and the entry should be made, payment for these taxes will occur in December. 4. CREATE THE ADJUSTED TRIAL BALANCE. 5. CREATE THE NOVEMBER 30, 2019 INCOME STATEMENT. The amount for each account must be linked from the ending balances in the Trial Balance. All sub-totals and totals must be accurately calculated using Excel formulas. 6. CREATE THE NOVEMBER 30, 2019 BALANCE SHEET. The amount for each account must be linked from the ending balances in the Trial Balance. All sub-totals and totals must be accurately calculated using Excel formulas. Transactions (from journal Entries a. through o.) Debit Credit November 30, 2019 Unadjusted Trial Balance Debit Credit Adjusting Journal Entries (Entries p. through u.) Debit Credit Adjusted/Ending Trial Balance Debit Credit 2 3 November 1, 2019 Beginning Balances Debit Credit 91,457.00 18,800.00 9,278.00 7,436.31 700.00 4 5 6 6,597.00 583.68 7 8 9 10 11 12 13 14 15 5,775.00 779.42 16 17 18 19 3,175.00 880.00 4,400.00 250.00 20 21 22 Acct # Description 1000 Cash 1010 Accounts Receivable 1020 Inventory 1030 Prepaid Insurance 1040 Prepaid Rent 1100 Building 1110 Computers & Software 1115 Accumulated Dep Comp 1120 Furniture & Fixtures 1125 Accumulated Dep F&F 1130 Land 1140 Machinery & Equipment 1150 Accumulated Dep M&E 2000 Accounts Payable 2010 Payroll Tax Payable 2015 Wages Payable 2020 Sales Tax Payable 2030 Unearned Revenue 2040 Line of Credit 2050 Notes Payable 3000 Peters, J., Capital 3010 Peters, M., Capital 3050 Retained Earnings 5000 Designing Revenue 5010 Furnishing Sales 5020 Cost of Goods Sold 6000 Vendor Compensation 6010 Contract Labor Expense 6020 Materials Expense 6030 Supplies Expense 6040 Wages Expense 6050 Depreciation Expense 6060 Insurance Expense 6070 Office Rent Expense 6080 Office Supplies Expense 6090 Payroll Tax Expense 6100 Postage Expense 6110 Small Tools Expense 1,000.00 1,000.00 127,975.21 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 140,043.31 140,043.31 0.00 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 Journal Entries Trial Balance Income Statement Balance Sheet # Ready 1. CREATE JOURNAL ENTRIES FOR THE November 2019 TRANSACTIONS BELOW FOR SUNFLOWER DESIGNS: a. On November 1, $350 of office supplies was purchased on credit; the terms of the invoice were net 30. All of the supplies were used during the month of November. b. On November 1, a computer laptop was purchased on credit totaling $2,000. The estimated useful life of the computer is three (3) years and is expected to have no salvage value. The invoice terms were 2/10, net 30. c. On November 2, a 24-month liability insurance policy was purchased to cover Sunflower Designs. The full cost of the policy, $3,600, was paid in cash on the same date. d. On November 4, payroll checks were issued for the wages payable balance. e. On November 5, Sunflower Designs purchased $4,000 worth of inventory items for resale. These items were purchased on credit and the invoice term is 2/10, net 30. f. On November 9, a check was issued to pay for the inventory purchased on November 5. g. On November 10, Sunflower Designs paid for the office supplies purchased on credit on November 1. h. On November 12, Sunflower Designs completed and delivered an interior design layout to a customer for $6,980. The customer had paid for the services in advance in a previous month, and Sunflower Designs had appropriately recorded the deposit. i. On November 14, Sunflower Designs completed, delivered, and billed an interior design layout for $18,500 to a new customer. The terms of the invoice were 2/10, net 30. j. On November 14, Sunflower Designs paid $2,850 in wages to a temporary employee. On the same date, the company remitted payroll taxes of $880, previously accrued, to the appropriate government entities. k. On November 18, Sunflower Designs received a refund of $45 from their office supply vendor for items that were returned on the November 1 purchase. 1. On November 20, a customer paid the balance due for an interior design layout. The invoice for these services was sent to the customer on July 20, 2019. The contract price was $4,450. m.On November 24, Sunflower Designs sold a side table from inventory for $990. The inventory cost for this item was $430. The customer paid cash for this purchase. n. On November 26, $435 worth of inventory was returned to supplier because of defects. The inventory had been purchased on account in August and had not been paid for. o. On November 30, the customer delivered a check for one-half of the interior design invoice delivered on November 14. 2. CREATE THE NOVEMBER 30, 2019 UNADJUSTED TRIAL BALANCE 3. CREATE ADJUSTING JOURNAL ENTRIES FOR NOVEMBER 30, 2019: p. Record the depreciation for the laptop purchased on November 1. q. Record the November 2019 depreciation for all computers & software owned before the November 1 purchase. These items are being depreciated over 3 years using the straight- line method with no salvage value. r. Record the November 2019 depreciation for the furniture & fixtures. These items are being depreciated over 7 years using the straight-line method with no salvage value. s. Record the adjusting entry for November's rent. Sunflower Designs paid $4,800 in advance for 6 months' rent on September 1, 2019. All previous months' adjusting entries were made as required. t. Record the adjusting entry for the consumption of prepaid insurance for the month of November. The preexisting policy has 41-months remaining as of November 1, and recall that the new policy provides coverage for 24-months. The previous months' adjusting entries were made as required. u. Record the amount due to employees for time worked during November, but not paid. The amount earned by the employees was $5,100. The payroll taxes should be accrued at 20% of the wages and the entry should be made, payment for these taxes will occur in December. 4. CREATE THE ADJUSTED TRIAL BALANCE. 5. CREATE THE NOVEMBER 30, 2019 INCOME STATEMENT. The amount for each account must be linked from the ending balances in the Trial Balance. All sub-totals and totals must be accurately calculated using Excel formulas. 6. CREATE THE NOVEMBER 30, 2019 BALANCE SHEET. The amount for each account must be linked from the ending balances in the Trial Balance. All sub-totals and totals must be accurately calculated using Excel formulas. Transactions (from journal Entries a. through o.) Debit Credit November 30, 2019 Unadjusted Trial Balance Debit Credit Adjusting Journal Entries (Entries p. through u.) Debit Credit Adjusted/Ending Trial Balance Debit Credit 2 3 November 1, 2019 Beginning Balances Debit Credit 91,457.00 18,800.00 9,278.00 7,436.31 700.00 4 5 6 6,597.00 583.68 7 8 9 10 11 12 13 14 15 5,775.00 779.42 16 17 18 19 3,175.00 880.00 4,400.00 250.00 20 21 22 Acct # Description 1000 Cash 1010 Accounts Receivable 1020 Inventory 1030 Prepaid Insurance 1040 Prepaid Rent 1100 Building 1110 Computers & Software 1115 Accumulated Dep Comp 1120 Furniture & Fixtures 1125 Accumulated Dep F&F 1130 Land 1140 Machinery & Equipment 1150 Accumulated Dep M&E 2000 Accounts Payable 2010 Payroll Tax Payable 2015 Wages Payable 2020 Sales Tax Payable 2030 Unearned Revenue 2040 Line of Credit 2050 Notes Payable 3000 Peters, J., Capital 3010 Peters, M., Capital 3050 Retained Earnings 5000 Designing Revenue 5010 Furnishing Sales 5020 Cost of Goods Sold 6000 Vendor Compensation 6010 Contract Labor Expense 6020 Materials Expense 6030 Supplies Expense 6040 Wages Expense 6050 Depreciation Expense 6060 Insurance Expense 6070 Office Rent Expense 6080 Office Supplies Expense 6090 Payroll Tax Expense 6100 Postage Expense 6110 Small Tools Expense 1,000.00 1,000.00 127,975.21 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 140,043.31 140,043.31 0.00 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 Journal Entries Trial Balance Income Statement Balance Sheet # Ready