ACCOUNTING 101 - PRACTICE SET Spring 2021 Due: Wednesday, April 27, 2022 at 11:59 pm Taj Patel, a sole proprietor, created Juicy Lemonade on December 1, 2021. Juicy Lemonade is a wholesaler that specializes in selling organic flavored lemonades to colleges and universities, restaurants, and grocery stores. This merchandising company uses the perpetual inventory system, the gross method and adjusts its books monthly. The transactions for the month of December are as follow: 12/1 Taj Patel invested $100,000 cash, a $20,000 computer system and $5,000 of office equipment into the company. 12/1 The company paid $1,500 cash for rent for the retail store space for the month of December 12/1 The company purchased $48,000 of inventory from Organic Juices Unlimited. The credit terms are 2/10, n/30. 12/2 The company purchased office supplies for $3,450 cash. 12/2 The company purchased a delivery vehicle for $17,000 cash. 12/2 The company purchased a 12-month insurance policy for $5,200 cash. 12/3 The company purchased $18,000 of inventory from Juice Power. The credit terms are 2/15, n/30 12/5 The company sold merchandise to Delaware Technical Community College on credit for $42,850, terms 2/15, net 30. The merchandise sold had a cost of $21,250. 12/7 The company purchased inventory from JC Juice for $27,850 cash. 12/8 The company returned $4,500 of inventory to Juice Power and received fullcredit. 12/10 The company sold merchandise to Good Life Eats for $65,200 cash. The merchandise sold had a cost of $38,400. 12/10 Paid the amount due on the 12/1 purchase from Organic Juices Unlimited. 12/12 Good Life Eats discovered they received the wrong flavor, but they decided to keep the merchandise anyway. The company issued a credit memorandum and returned $7,000 cash to Good Life Eats for the error. 12/15 Delaware Technical Community College paid for the merchandise sold on 12/5. 12/18 The company paid the amount due, less the return on the 12/3 purchase from Juice Power. 12/20 The owner withdrew $7,500 cash for personal use. Dr. Evelyn Money Required: 1. Using the chart of accounts provided for you, prepare journal entries for the transactions for the month of December. 2. Post the December transactions using the T-accounts provided foryou. 3. Create an unadjusted trial balance. Check Figure: $233,050 Total Debits 4. Once you have verified that your unadjusted trial balance is correct, prepare the following adjusting entries. a. 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 $3,450. b. One month's insurance expired on the 12-month insurance policy purchased on December 1st for $5,200. c. Depreciation expense on the computer equipment, office equipment, and the vehicle totaled $750 for the month of December. d. Juicy Lemonade pays their 3 part-time employees a monthly basis. The employees will receive their paychecks totaling $3,000 on January 2nd, 2021. 5. Post the adjusting entries to the T-accounts provided. 6. Create an adjusted trial balance. Check Figure: $236,800 Total Debits 7 Once you have verified that your adjusted trial balance is correct, prepare a multiple-step income statement (see page 181 in your textbook for guidance), a statement of owner's equity (see page 131), and a balance sheet (see page 131). Check Figure: Net income $33,410. 8 Prepare closing entries. 9. Post the closing entries to the T-accounts provided. 10. Prepare a post-closing trial balance. Dr. Evelyn Money Chart of Accounts Cash Assets 100 105 110 120 Liabilities 200 205 Accounts Payable Salaries Payable 125 Accounts Receivable Merchandise Inventory Office Supplies Prepaid Insurance Computer Equipment Office Equipment Vehicles Accumulated Depreciation Capital 300 305 T. Patel, Capital T. Patel, Withdrawals 130 135 140 145 Revenues 400 405 410 Sales Sales Discounts Sales Returns and Allowances Expenses 500 505 510 515 520 525 Cost of Goods Sold Rent Expense Office Supplies Expense Insurance Expense Depreciation Expense Salaries Expense 600 Income Summary Dr. Evelyn Money Sheet1 Sheet2 Sheet3 Xerox Merchandic pprent E. aurana as Park Saatke I. PC I.PL Wii Sis Silah Calm and TWIN Citas Twy Client Ito D Sakties Egere ACCOUNTING 101 - PRACTICE SET Spring 2021 Due: Wednesday, April 27, 2022 at 11:59 pm Taj Patel, a sole proprietor, created Juicy Lemonade on December 1, 2021. Juicy Lemonade is a wholesaler that specializes in selling organic flavored lemonades to colleges and universities, restaurants, and grocery stores. This merchandising company uses the perpetual inventory system, the gross method and adjusts its books monthly. The transactions for the month of December are as follow: 12/1 Taj Patel invested $100,000 cash, a $20,000 computer system and $5,000 of office equipment into the company. 12/1 The company paid $1,500 cash for rent for the retail store space for the month of December 12/1 The company purchased $48,000 of inventory from Organic Juices Unlimited. The credit terms are 2/10, n/30. 12/2 The company purchased office supplies for $3,450 cash. 12/2 The company purchased a delivery vehicle for $17,000 cash. 12/2 The company purchased a 12-month insurance policy for $5,200 cash. 12/3 The company purchased $18,000 of inventory from Juice Power. The credit terms are 2/15, n/30 12/5 The company sold merchandise to Delaware Technical Community College on credit for $42,850, terms 2/15, net 30. The merchandise sold had a cost of $21,250. 12/7 The company purchased inventory from JC Juice for $27,850 cash. 12/8 The company returned $4,500 of inventory to Juice Power and received fullcredit. 12/10 The company sold merchandise to Good Life Eats for $65,200 cash. The merchandise sold had a cost of $38,400. 12/10 Paid the amount due on the 12/1 purchase from Organic Juices Unlimited. 12/12 Good Life Eats discovered they received the wrong flavor, but they decided to keep the merchandise anyway. The company issued a credit memorandum and returned $7,000 cash to Good Life Eats for the error. 12/15 Delaware Technical Community College paid for the merchandise sold on 12/5. 12/18 The company paid the amount due, less the return on the 12/3 purchase from Juice Power. 12/20 The owner withdrew $7,500 cash for personal use. Dr. Evelyn Money Required: 1. Using the chart of accounts provided for you, prepare journal entries for the transactions for the month of December. 2. Post the December transactions using the T-accounts provided foryou. 3. Create an unadjusted trial balance. Check Figure: $233,050 Total Debits 4. Once you have verified that your unadjusted trial balance is correct, prepare the following adjusting entries. a. 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 $3,450. b. One month's insurance expired on the 12-month insurance policy purchased on December 1st for $5,200. c. Depreciation expense on the computer equipment, office equipment, and the vehicle totaled $750 for the month of December. d. Juicy Lemonade pays their 3 part-time employees a monthly basis. The employees will receive their paychecks totaling $3,000 on January 2nd, 2021. 5. Post the adjusting entries to the T-accounts provided. 6. Create an adjusted trial balance. Check Figure: $236,800 Total Debits 7 Once you have verified that your adjusted trial balance is correct, prepare a multiple-step income statement (see page 181 in your textbook for guidance), a statement of owner's equity (see page 131), and a balance sheet (see page 131). Check Figure: Net income $33,410. 8 Prepare closing entries. 9. Post the closing entries to the T-accounts provided. 10. Prepare a post-closing trial balance. Dr. Evelyn Money Chart of Accounts Cash Assets 100 105 110 120 Liabilities 200 205 Accounts Payable Salaries Payable 125 Accounts Receivable Merchandise Inventory Office Supplies Prepaid Insurance Computer Equipment Office Equipment Vehicles Accumulated Depreciation Capital 300 305 T. Patel, Capital T. Patel, Withdrawals 130 135 140 145 Revenues 400 405 410 Sales Sales Discounts Sales Returns and Allowances Expenses 500 505 510 515 520 525 Cost of Goods Sold Rent Expense Office Supplies Expense Insurance Expense Depreciation Expense Salaries Expense 600 Income Summary Dr. Evelyn Money Sheet1 Sheet2 Sheet3 Xerox Merchandic pprent E. aurana as Park Saatke I. PC I.PL Wii Sis Silah Calm and TWIN Citas Twy Client Ito D Sakties Egere