1 Skipped The Fashion Rack The Fashion Rack is a retail merchandising business that sells brand-name clothing at discount prices. The firm is owned and managed by Teresa Lojay, who started the business on April 1, 20X1. This project will give you an opportunity to put your knowledge of accounting into practice as you handle the accounting work of The Fashion Rack during the month of October 20X1. INTRODUCTION The Fashion Rack has a monthly accounting period. The firm's chart of accounts is shown below. The journals used to record transactions are the sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Postings are made from the journals to the accounts receivable ledger, accounts payable ledger, and general ledger. The employees are paid at the end of the month. A computerized payroll service prepares all payroll records and checks. DATE TRANSACTIONS Oct. 1 Issued Check 601 for $4,400 to pay Properties Management, Inc., the monthly rent. 1 Signed a three-month radio advertising contract with Cable Station KTLE for $5,100; issued Check 602 to pay the full amount in advance. 2 Received $520 from Megan Greening, a credit customer, in payment of her account. 2 Issued Check 603 for $17,820 to remit the sales tax owed for July through September to the State Tax Commission. 2 Issued Check 604 for $7,673.40 to A Fashion Statement, a creditor, in payment of Invoice 9387 ($7,830), less a cash discount ($156.60). 3 Sold merchandise on credit for $2,480 plus sales tax of $124 to Mariam Salib, Sales Slip 241. 4 Issued Check 605 for $1,050 to BMX Supply Co. for supplies. 4 Issued Check 606 for $8,594.60 to Unique Styles, a creditor, in payment of Invoice 5671 ($8,770), less a cash discount ($175.40). 5 Collected $1,700.00 on account from Amy Trinh, a credit customer. 5 Accepted a return of merchandise from Mariam Salib. The merchandise was originally sold on Sales Slip 241, dated October 3; issued Credit Memorandum 18 for $630, which includes sales tax of $30. 5 Issued Check 607 for $1,666 to Classy Threads, a creditor, in payment of Invoice 3292 ($1,700), less a cash discount ($34). 6 Had cash sales of $18,600 plus sales tax of $930 during October 1-6. 8 Received a check from James Helmer, a credit customer, for $832 to pay the balance he owes. 8 Issued Check 608 for $1,884 to deposit social security tax ($702), Medicare tax ($162), and federal income tax withholding ($1,020) from the September payroll. Record this check in the cash payments journal. 9 Sold merchandise on credit for $2,050 plus sales tax of $102.50 to Emma Maldonado, Sales Slip 242. 10 Issued Check 609 for $1,525 to pay The Daily News for a newspaper advertisement that appeared in October. 11 Purchased merchandise for $4,820 from A Fashion Statement, Invoice 9422, dated October 8; the terms are 2/10, n/30. 12 Issued Check 610 for $395 to pay freight charges to Ace Freight Company, the trucking company that delivered merchandise from A Fashion Statement on September 27 and October 11. 13 Had cash sales of $13,200 plus sales tax of $660 during October 8-13. 15 Sold merchandise on credit for $1,940 plus sales tax of $97 to James Helmer, Sales Slip 243. 16 Purchased discontinued merchandise from Acme Jobbers; paid for it immediately with Check 611 for $5,120. 16 Received $510 on account from Mariam Salib, a credit customer. LUL to pay you can you come by Company, GOGLIOLOG 1 Skipped merchandise from A Fashion Statement on September 27 and October 11. 13 Had cash sales of $13,200 plus sales tax of $660 during October 8-13. 15 Sold merchandise on credit for $1,940 plus sales tax of $97 to James Helmer, Sales Slip 243. 16 Purchased discontinued merchandise from Acme Jobbers; paid for it immediately with Check 611 for $5,120. 16 Received $510 on account from Mariam Salib, a credit customer. 16 Issued Check 612 for $4,723.60 to A Fashion Statement, a creditor, in payment of Invoice 9422 ($4,820.00), less cash discount ($96.40). 18 Issued Check 613 for $7,400 to Teresa Lojay as a withdrawal for personal use. 20 Had cash sales of $13,500 plus sales tax of $675 during October 15-20. 22 Issued Check 614 to City Utilities for $1,492 to pay the monthly electric bill. 24 Sold merchandise on credit for $820 plus sales tax of $41 to Megan Greening, Sales Slip 244. 25 Purchased merchandise for $3,580 from Classy Threads, Invoice 3418, dated October 23; the terms are 2/10, n/30. 26 Issued Check 615 to Regional Telephone for $940 to pay the monthly telephone bill. 27 Had cash sales of $14,240 plus sales tax of $712 during October 22-27. 29 Received Credit Memorandum 175 for $430 from Classy Threads for defective goods that were returned. The original purchase was recorded on October 25. 29 Sold merchandise on credit for $3,450 plus sales tax of $172.50 to Amy Trinh, Sales Slip 245. 29 Recorded the October payroll. The records prepared by the payroll service show the following totals: earnings, $10,800; social security, $702.00; Medicare, $162.00; income tax, $1,020; and net pay, $8,916. The excess withholdings corrected an error made in withholdings in September. 29 Recorded the employer's payroll taxes, which were calculated by the payroll service: social security, $702; Medicare, $162; federal unemployment tax, $118; and state unemployment tax, $584. This, too, reflects an understatement of taxes recorded in September and corrected in this month. 30 Purchased merchandise for $4,080 from Unique Styles, Invoice 5821, dated October 26; the terms are 1/10, n/30. 31 Issued Checks 616 through 619, totaling $8,916.00, to employees to pay October payroll. For the sake of simplicity, enter the total of the checks on a single line in the cash payments journal. 31 Issued Check 620 for $525 to A+ Janitors for October janitorial services. 31 Had cash sales of $1,800 plus sales tax of $90 for October 29-31. ADJUSTMENTS 31 During October, the firm had net credit sales of $10,140. From experience with similar businesses, the previous accountant had estimated that 1.0 percent of the firm's net credit sales would result in uncollectible accounts. Record an adjustment for the expected loss from uncollectible accounts for the month of October. 31 On October 31, an inventory of the supplies showed that items costing $2,740 were on hand. Record an adjustment for the supplies used in October. 31 On September 30, 20X1, the firm purchased a six-month insurance policy for $8,400. Record an adjustment for the expired insurance for October. 31 On October 1, 20X1, the firm signed a three-month advertising contract for $5,100 with a local cable television station and paid the full amount in advance. Record an adjustment for the expired advertising for October. 31 On April 1, 20x1, the firm purchased equipment for $83,000. The equipment was estimated to have a useful life of five years and a salvage value of $12,500. Record an adjustment for depreciation on the equipment for October. 31 Based on a physical count, ending merchandise inventory was determined to be $82,260. Required: Part 1 1 Skipped Required: Part 1 1. Sales Journal, Purchases Journal, Cash Receipts Journal, Cash Payments Journal, and General Journal Tabs: Analyze the transactions for October and record each transaction in the proper journal. 2. General Ledger, Accts Rec Sub Ledger, and Accts Pay Sub Ledger Tabs: Post the individual entries that involve customer and creditor accounts from the journals to the subsidiary ledgers on a daily basis. Post the individual entries that appear in the general journal and in the Other Accounts sections of the cash receipts and cash payments journals to the general ledger on a daily basis. 3. Sales Journal, Purchases Journal, Cash Receipts Journal, Cash Payments Journal Tabs: Total, prove, and rule the special journals as of October 31, 20X1. Post the column totals from the special journals to the general ledger accounts. Scroll down to the bottom to complete both sets of Tabs. Complete this question by entering your answers in the tabs below. Requirement Sales Journal Purchases Journal Cash Receipts Journal Cash Payments Journal General Journal General Ledger Accts Rec Ledger Accts Pay Ledger Analyze the transactions for October and record each transaction in the proper journal. (Round your answers to 2 decimal places.) SALES JOURNAL Date Sales Slip No. Customer's Name Accounts Receivable Sales Tax Payable Credit Sales Credit Debit Oct. 3, 20X1 241 Mariam Salib $ 2,480.00 $ 124.00 $ 2,604.00 Oct. 31, 20X1 Totals $ 2,480.00 $ 124.00 $ 2,604.00 1 Complete this question by entering your answers in the tabs below. Skipped Sales Requirement Journal Purchases Journal Cash Receipts Journal Cash Payments Journal General Journal General Ledger Accts Rec Ledger Accts Pay Ledger Analyze the transactions for October and record each transaction in the proper journal. (Round your answers to 2 decimal places.) PURCHASES JOURNAL Purchases Debit Date Purchased From Invoice Number Date of Invoice Terms /Accounts Payable Credit October 31 Totals $ 0.00 Skipped Sales Requirement Journal Purchases Journal Cash Receipts Journal Cash Payments Journal General Journal General Ledger Accts Rec Ledger Accts Pay Ledger Analyze the transactions for October and record each transaction in the proper journal. (Round your answers to 2 decimal places CASH RECEIPTS JOURNAL Accounts Date Description Receivable Sales Tax Payable Credit Sales Credit Other Accounts Credit Account Name Cash Debit Credit Oct. 2, 20X1 Oct. 5, 20X1 Oct. 6, 20X1 Oct. 8, 20X1 Oct. 13, 20X1 Oct. 16, 20X1 Oct. 20, 20X1 Oct. 27, 20X1 Oct. 31, 20X1 Oct. 31, 20X1 Totals $ 0.00 $ 0.00 $ 0.00 0.00 $ 0.00 $ 0.00 1 Sales Requirement Journal Purchases Journal Cash Receipts Journal Cash Payments Journal General Journal General Ledger Accts Rec Ledger Accts Pay Ledger Analyze the transactions for October and record each transaction in the proper journal. (Round your answers to 2 decimal places.) View transaction list Skipped Journal entry worksheet 2 3 4 Issued Credit Memo 18 for damaged merchandise originally sold on Sales Slip 241, October 3. Note: Enter debits before credits. Date Oct. 5, 20X1 General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet 1 2 3 4 Received Credit Memo 175 for defective goods returned; original purchase made on Invoice 3418, October 25. Note: Enter debits before credits. Date Oct. 29, 20X1 General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet 1 2 3 4 To record October payroll. Note: Enter debits before credits. Date Oct. 29, 20X1 General Journal Debit Credit Record entry Clear entry General Ledger > Sales Requirement Journal Purchases Journal Cash Receipts Journal Cash Payments Journal General Journal General Ledger Accts Rec Ledger Accts Pay Ledger Analyze the transactions for October and record each transaction in the proper journal. (Round your answers to 2 decimal places.) View transaction list Journal entry worksheet 1 2 3 4 To record October payroll taxes. Note: Enter debits before credits. Date Oct. 29, 20X1 General Journal Debit Credit Record entry Clear entry View general journal > Complete this question by entering your answers in the tabs below. ed Requirement Sales Journal Purchases Journal Cash Cash Receipts Payments Journal Journal General Journal General Ledger Accts Rec Ledger Accts Pay Ledger Post the individual entries that appear in the general journal and in the Other Accounts sections of the cash receipts and cash payments journals to the general ledger on a daily basis. At the end of the month, post column totals from the special journals to the general ledger accounts. (Round your answers to 2 decimal places.) Cash Account No. 101 Accounts Receivable Account No. 111 Date Debit Credit Balance Date Debit Credit Balance Oct. 01, 20X1 59,800.00 Oct. 01, 20X1 6,210.00 Allowance for Doubtful Accounts Date Oct. 01, 20X1 Debit Account No. 112 Merchandise Inventory Account No. 121 Credit Balance 420.00 Date Oct. 01, 20X1 Debit Credit Balance 88,996.00 Prepaid Insurance Supplies Account No. 131 Date Debit Credit Balance Oct. 01, 20X1 4,100.00 Date Oct. 01, 20X1 Account No. 133 Debit Credit Balance 8,400.00 Account No. 135 Debit Credit Prepaid Advertising Date Oct. 01, 20X1 Accumulated Depreciation- Equipment Date Oct. 01, 20X1 Balance Date 0.00 Oct. 01, 20X1 Equipment Account No. 141 Debit Credit Balance 83,000.00 Account No. 142 Accounts Payable Account No. 203 Debit Credit Balance 7,050.00 Date Oct. 01, 20X1 Debit Credit Balance 18,300.00 Social Security Tax Payable Date Oct. 01, 20X1 Medicare Tax Payable Account No. 221 Debit Credit Balance 702.00 Date Oct. 01, 20X1 Employee Income Tax Payable Date Oct. 01, 20X1 Account No. 222 Debit Credit Balance 162.00 Federal Unemployment Tax Payable Account No. 223 Debit Credit Balance 1,020.00 Date Oct. 01, 20X1 Account No. 225 Debit Credit Balance 512.00 State Unemployment Tax Payable Date Oct. 01, 20X1 Debit Account No. 227 Credit Salaries Payable Balance Date 1,268.00 Oct. 01, 20X1 Debit Credit Account No. 229 Balance 0.00 Account No. 301 Debit Credit Balance 203,252.00 Account No. 231 Teresa Lojay, Capital Debit Credit Balance 17,820.00 Date Oct. 01, 20X1 Sales Tax Payable Date Oct. 01, 20X1 Teresa Lojay, Drawing Date Oct. 01, 20X1 Account No. 302 Income Summary Account No. 399 Debit Credit Balance Date Debit Credit Balance 0.00 Oct. 01, 20X1 0.00 Account No. 402 Debit Credit Balance 0.00 Sales Account No. 401 Sales Returns and Allowances Date Debit Credit Balance Oct. 01, 20X1 0.00 Date Oct. 01, 20X1 Date Oct. 01, 20X1 Purchases Account No. 501 Debit Credit Purchases Returns and Allowances Date Oct. 01, 20X1 Debit Advertising Expense Date Oct. 01, 20X1 Freight In Account No. 502 Balance Date Debit Credit Balance 0.00 Oct. 01, 20X1 0.00 Account No. 503 Credit Purchases Discounts Account No. 504 Balance 0.00 Date Oct. 01, 20X1 Debit Credit Balance 0.00 Depreciation Expense- Account No. 611 Equipment Debit Credit Balance 0.00 Date Oct. 01, 20X1 Insurance Expense Date Oct. 01, 20X1 Account No. 614 Debit Credit Balance 0.00 Account No. 617 Uncollectible Accounts Expense Debit Credit Balance 0.00 Date Oct. 01, 20X1 Debit Account No. 620 Credit Balance 0.00 Debit Credit Account No. 626 Balance 0.00 Account No. 623 Payroll Taxes Expense Debit Credit Balance 0.00 Date Oct. 01, 20X1 Janitorial Services Expense Date Oct. 01, 20X1 Rent Expense Date Oct. 01, 20X1 Salaries Expense Account No. 629 Debit Credit Balance 0.00 Date Oct. 01, 20X1 Supplies Expense Date Oct. 01, 20X1 Utilities Expense Date Oct. 01, 20X1 Debit Credit Account No. 632 Balance 0.00 Account No. 638 Debit Credit Balance 0.00 Account No. 635 Telephone Expense Debit Credit Balance 0.00 Date Oct. 01, 20X1 Account No. 644 Debit Credit Balance 0.00 Casil Casil Sales Requirement Journal Purchases Journal Receipts Payments Journal Journal General Journal General Ledger Accts Rec Ledger Accts Pay Ledger Post the individual entries that involve customer accounts from the journals to the subsidiary ledgers on a daily basis. (Round your answers to 2 decimal places.) Ashley Butler n/30 Date Debit Credit Balance Megan Greening Date n/30 Debit Credit Balance Oct. 01, 20X1 795.00 Oct. 01, 20X1 520.00 James Helmer Date Oct. 01, 20X1 Date Oct. 01, 20X1 Date Oct. 01, 20X1 Jim Price Amy Trinh n/30 Emma Maldonado n/30 Debit Credit Balance 832.00 Date Oct. 01, 20X1 Debit Credit Balance 232.00 Debit Credit Debit Credit n/30 n/30 Mariam Salib n/30 Balance Date Debit Credit Balance 1,621.00 Oct. 01, 20X1 510.00 Balance 1,700.00 Sales Requirement Journal Purchases Journal Cash Cash Receipts Payments Journal Journal General Journal General Ledger Accts Rec Ledger Accts Pay Ledger Post the individual entries that involve creditor accounts from the journals to the subsidiary ledgers on a daily basis. (Round your ans A Fashion Statement Date Oct. 01, 20X1 2/10,n/30 Classy Threads 2/10,n/30 Debit Credit Balance Date Debit Credit Balance 7,830.00 Oct. 01, 20X1 1,700.00 Unique Styles 1/10,n/30 Date Debit Credit Oct. 01, 20X1 Balance 8,770.00 Debit Trial Balance Credit THE FASHION RACK Worksheet For Month Ended October 31, 20X1 Adjustments Adjusted Trial Balance Debit Credit Debit Income Statement Balance Sheet Credit Debit Credit Debit Credit Account Name 101: Cash 111: Accounts receivable 112: Allowance for doubtful accounts 121: Merchandise inventory 131: Supplies 133: Prepaid insurance 135: Prepaid advertising 141: Equipment 142: Accumulated depreciation-Equipment 203: Accounts payable 221: Social security tax payable 222: Medicare tax payable 223: Employee income tax payable 225: Federal unemployment tax payable 227: State unemployment tax payable 229: Salaries payable 231: Sales tax payable 301: Teresa Lojay, Capital 302: Teresa Lojay, Drawing 399: Income summary 401: Sales 402: Sales returns and allowances 501: Purchases 502: Freight In 503: Purchases returns and allowances 504: Purchases discounts 611: Advertising expense 611. Donreciation avance Cquinment 225: Federal unemployment tax payable 227: State unemployment tax payable 229: Salaries payable 231: Sales tax payable 301: Teresa Lojay, Capital 302: Teresa Lojay, Drawing 399: Income summary 401: Sales 402: Sales returns and allowances 501: Purchases 502: Freight In 503: Purchases returns and allowances 504: Purchases discounts 611: Advertising expense 614: Depreciation expense-Equipment 617: Insurance expense 620: Uncollectible accounts expense 623: Janitorial services expense 626: Payroll taxes expense 629: Rent expense 632: Salaries expense 635: Supplies expense 638: Telephone expense 644: Utilities expense Total Requirement Schedule of Schedule of Accts Rec Worksheet Accts Pay Income Statement Stmt of Balance Equity Sheet Adjusting and Closing Postclosing Prepare a classified income statement for the month ended October 31, 201. (The firm does not divide its operating expenses selling and administrative expenses.) (Amounts to be deducted should be indicated by a minus sign. Round your answers to 2 decimal places.) Operating revenue THE FASHION RACK Income Statement For Month Ended October 31, 20X1 Cost of goods sold Total merchandise available for sale Operating expenses Complete this question by entering your answers in the tabs below. Requirement Schedule of Schedule of Accts Rec Worksheet Accts Pay Income Statement Stmt of Equity Balance Sheet Adjusting and Closing Postclosing Prepare a statement of owner's equity for the month ended October 31, 20X1. (Round your answers to 2 decimal p THE FASHION RACK Statement of Owner's Equity For Month Ended October 31, 20X1 Complete this question by entering your answers in the tabs below. Requirement Schedule of Schedule of Accts Rec Worksheet Accts Pay Income Statement Stmt of Equity Balance Sheet Adjusting and Closing Postclosing Prepare a classified balance sheet as of October 31, 20X1. (Amounts to be deducted should be indicated by a minus sig Round your answers to 2 decimal places.) THE FASHION RACK Balance Sheet October 31, 20X1 Assets Current assets Prepaid expenses Total current assets Plant and equipment Total plant and equipment Total assets Liability and Owner's Equity MH Connect Question 1 - Final Exam - Conn x MATH-200-AAC-Elem Probabil C Post a new question G screenshot on mac - Google Sex + ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddle... Final Exam 1 Saved Requirement Schedule of Schedule of Accts Rec Worksheet Accts Pay Income Statement Stmt of Equity Balance Sheet Adjusting and Closing Postclosing At the end of the month, journalize and post the adjusting entries and then the closing entries in the General Journal. (Round your answers to 2 decimal places.) Skipped View transaction list Mc Graw Hill Journal entry worksheet 2 3 4 5 6 7 8 11 To record estimated loss from uncollectible accounts, based on 1% of net credit sales. Note: Enter debits before credits. Date Oct. 31, 20X1 General Journal Debit Credit Record entry Clear entry View general journal Help Save & Exit Submit Update