12/2 ACCOUNTING 101 - PRACTICE SET Fall 2020 Taj Ramaj, a sole proprietor, created Juicy Lemonade on December 1, 2019. Juicy Lemonade is a Wholesaler that specializes in selling organic Navored lemonades to colleges and universities, restaurants and grocery stores. This Merchandising Company uses the perpetual inventory system and adjusts its books monthly. The transactions for the month of December are as follow 12/1 Taj Ramaj invested $100,000 cach, a $20,000 computer system and $5,000 of office equipment into the Company 12/1 The Company paid $2,000 cash for rent for the retail store space for the month of December 12/1 The Company purchased $50,000 of inventory from Organic Juices Unlimited. The credit terms are 110/30 The Company purchased office supplies for $2,780 cash. 12/2 The Company purchased a delivery vehicle for $15,000 cash. 12/2 The Company purchased a 12 month insurance policy for 54,800 cash, 12/3 The Company purchased S15,000 of inventory from Juice Power. The credit terms are 2/15, 30 12/5 The Company sold merchandise to Delaware Technical Community College on credit for 543750, terma 2/15, net 30. The merchandise sold had a cost of $25.000 12/2 The Company purchased inventory from Choice for $30,000 canh 12/8 The Company returned $5,000 of inventory to Juice Power and received full credit 37/20 The Company told merchandise to Good Ule Cats for $70,000 cash. The merchandise sold had a cost of $40,000 12/10 Paid the amount due on the 12/1 purchase from Organic Juices Unlimited 12/12 Good Life Lata discovered they received the wrong favor, but they decided to keep the merchandise away. The company issued a credit manum and returned $10,000 cash Good Life Cats for the cor 12/15 Delaware Technical Community Collegepaid for the merchandissold on 12/5 19/11 The compat the amount due less the return on the 12/tchase homice Power 12/20 The corner withdrew 55.000 cash for personale 2. 2 4 Required: Using the chart of accounts provided for you, prepare journal entries for the transactions for the month of December Post the December transactions using the accounts provided for you. Create an unadjusted trial balance Once you have verified that your unadjusted trial balance is correct, prepare the following adjusting entries 2. A physical count of the Office Supplies account showed that there was $2,000 worth of office supplies on hand. The balance of the Office Supplies account on the unadjusted trial balance is $2,780 b. One month's insurance expired on the 12 month insurance policy purchased on December 1" For $4.000 1. Depreciation expense on the computer guipment, office equipment, and the vehicle totaled 5750 for the month of December d. Juicy Lemonade pon their 3 part time employees on a monthly basis. The employees will receive their paychecks totaling $1,000 on January 2 2016 Post the adjusting entries to the accounts provided Create an adjusted trial balance Once you have verified that your ajusted trual balance correct, prepare a mustep income statements puce 210 in your tre book for dance statement owner's culty page 21 and balance sheet e pate 72). Prepare closing entries 6 7 Post the countries to the accounts provided Prepare stor balance https://dtce.zoom.us/3/9 Chart of Accounts Assets Liabilities 100 Cash 200 Accounts Payable 105 Accounts Receivable 205 Salaries Payable 110 Merchandise Inventory 120 Office Supplies Capital 125 300 Prepaid Insurance T. Ramal. Capital 130 Computer Equipment 305 T. Ramal. Withdrawal 135 Omice Equipment 140 Vehicles Revenues Sales 145 Accurated Depreciation os Sales Discount 410 Sales Returns and Allowances Expenses Cost of Goods Sold SOS Rent Expense 510 Office Supplies Expense 515 Insurance Cente 520 Depreciation Expense Salanes Expense 600 Income Summa