ACCT 2301 JW's Lock & Key Background JW's Lock & Key is owned and operated by Jake Wait Key is owned and operated by Jake Walters and is located in Odessa, TX. Jake is a locksmith and provides locksmith services and has a store that sells everything from keys to safes. You have just been hired as the accountant as of December 1, 2020. Required 1. The general ledger contains the current halances for all accounts as of November 30, 2020. The subsidiary ledgers for A/R and A/P also contain the current balances as of November 30, 2020. Review the information in these accounts before beginning the project. 2. Journalize the December transactions in the peneral lournal. Descriptions are not required 3. Post daily to the Accounts Receivable Subsidiary ledger and the Accounts Payable Subsidiary Ledger. Place a checkmark in the Post Reference column of the General Ledeer next to the GL account number, i.e. 2017. The checkmark denotes that you have posted to the Subsidiary Ledger account on December 31, post to the General Ledger 4. Prepare an Unadjusted Trial Balance, using the worksheet. Complete the worksheet using the following adjustment information for December: a. Office supplies on hand on December 31 are $1,058. b. A physical count of inventory showed an ending inventory cost of $44,500. c. Recorded depreciation on equipment for the month, $4,200. Insurance expired during December is $300. Earned $1,500 worth of the unearned service revenue. Sales refunds estimated for the year $10,000 Cost of estimated returns for the year $2,000 5. Journalize and post the adjusting entries. 6. Prepare JW's Lock & Key's financial statements for the year ended December 31, 2020. Note: Jake Walter's Capital at January 1, 2020 was $262,643. 7. Journalize and post the closing entries. 8. Prepare a Post-Closing Trial Balance. Note: This is a group project and you may work in groups up to 4 members. In the Accounting Project Module you will find group signup sheets. Once a group is full, please join the next available group. Every group member needs to turn in a completed set of project documents to his or her own drop box Since the project results should be the same for each group member in a respective group, I will grade the groups' project once and up load the grading sheet to the individual drop box for each member. The project needs to be scanned if you are using the pdf documents and turned in through Blackboard. JW's Lock & Key had the following transactions in December: Dec. 1 Paid December's rent, check #6287, $3,500.- 2 Paid annual premiums on property and casualty insurance policies, check #6286, 53,600. 3 Performed locksmith services on new house. sent invoice #601 to the homeowner, Sam Mason, $2,000. 4 Issued Invoice # 602 to Hastings who purchased a new safe on account. $3,800 Cost of Merchandise Sold was $1,250. 5 Purchased office supplies, check # 6289, $620. 6 Purchased inventory from Key Supplies Co., $5,500. terms 1/10, 1/30 7 Paid UPS $317 cash for delivery of the inventory purchased on December 7 Jake deposited an additional $8,000 cash in the business. 8 Returned damaged Inventory to Key Supplies Co., $500 8 Received $2,500 cash, an advance payment for locksmith services. 9 Unlocked a safe for a customer and received $1,000 cash. 9 Bought a new computer (equipment) from Office Depot on account, $1,967 10 Sold 2 safes and received cash, $2,200. Cost of Merchandise Sold was $800. 11 Purchased 5 safes to restock inventory on account from Brinks Co, $4,187 terms, 2/5. n/45. 12 Customer returned one of the safes purchased on December 10, refunded the customer $1,000 cash. Cost of Merchandise Sold was $475. 13 Paid Verizon for wireless telephone services, $559, check # 6290. 14 Paid Key Supplies Co for the purchase on December 6. less return and discount, check # 6291 14 Received cash on account, $1,500, From Nathan Dean. Dean did not pay his November invoice #590 within the credit terms 2/10. The discount was forfeited. 15 Recorded cash sales for the store from the 1st to the 15th, $13,908. Cost of Merchandise Sold was $4,783. 16 Received $1,900 from Hastings on account. 17 Paid Office Depot on account, $500, check # 6292. 18 Performed locksmith services on account for Larry Contractor, $700. 19 Paid electricity bill for December, check #6293, $1,835. 19 Paid for Domino's pizza delivery for the December office party, check #6294, $175 20 Jake withdrew $13,000 for a vacation. 25 Paid the water bill for December, check #6295, $120. 25 Paid Brinks Co. on account, $2,500, check #6296. 26 Paid part time employees their salary, $3,850. 27 Received cash on account from Larry Contractor, $700. Recorded cash sales for the store from the 16th to the 30th, $8.735. Cost of 30 Merchandise Sold was $2,784 JW's Lock & Key Chart of Accounts Liabilities 201 Accounts Payable 203 Refunds Payable 205 Unearned Service Revenue Assets 101 Cash 105 Accounts Receivable 110 Inventory 112 Estimated Returns Inventory 115 Office Supplies 117 Prepaid Insurance 120 Equipment 121 Accum. Depreciation - Equipment Owner's Equity 301 Jake Walters, Capital 311 Jake Walters, Withdrawal Revenues 401 Service Revenue 405 Sales Revenue 410 Sales Discounts Forfeited Expenses 501 Cost of Merchandise Sold 502 Advertising Expense 505 Depreciation Expense 507 Insurance Expense 508 Office Supplies Expense 509 Salary Expense 511 Rent Expense 512 Telephone Expense 513 Utilities Expense 525 Miscellaneous Expense Other Misc. 999 Income Summary ACCT 2301 JW's Lock & Key Background JW's Lock & Key is owned and operated by Jake Wait Key is owned and operated by Jake Walters and is located in Odessa, TX. Jake is a locksmith and provides locksmith services and has a store that sells everything from keys to safes. You have just been hired as the accountant as of December 1, 2020. Required 1. The general ledger contains the current halances for all accounts as of November 30, 2020. The subsidiary ledgers for A/R and A/P also contain the current balances as of November 30, 2020. Review the information in these accounts before beginning the project. 2. Journalize the December transactions in the peneral lournal. Descriptions are not required 3. Post daily to the Accounts Receivable Subsidiary ledger and the Accounts Payable Subsidiary Ledger. Place a checkmark in the Post Reference column of the General Ledeer next to the GL account number, i.e. 2017. The checkmark denotes that you have posted to the Subsidiary Ledger account on December 31, post to the General Ledger 4. Prepare an Unadjusted Trial Balance, using the worksheet. Complete the worksheet using the following adjustment information for December: a. Office supplies on hand on December 31 are $1,058. b. A physical count of inventory showed an ending inventory cost of $44,500. c. Recorded depreciation on equipment for the month, $4,200. Insurance expired during December is $300. Earned $1,500 worth of the unearned service revenue. Sales refunds estimated for the year $10,000 Cost of estimated returns for the year $2,000 5. Journalize and post the adjusting entries. 6. Prepare JW's Lock & Key's financial statements for the year ended December 31, 2020. Note: Jake Walter's Capital at January 1, 2020 was $262,643. 7. Journalize and post the closing entries. 8. Prepare a Post-Closing Trial Balance. Note: This is a group project and you may work in groups up to 4 members. In the Accounting Project Module you will find group signup sheets. Once a group is full, please join the next available group. Every group member needs to turn in a completed set of project documents to his or her own drop box Since the project results should be the same for each group member in a respective group, I will grade the groups' project once and up load the grading sheet to the individual drop box for each member. The project needs to be scanned if you are using the pdf documents and turned in through Blackboard. JW's Lock & Key had the following transactions in December: Dec. 1 Paid December's rent, check #6287, $3,500.- 2 Paid annual premiums on property and casualty insurance policies, check #6286, 53,600. 3 Performed locksmith services on new house. sent invoice #601 to the homeowner, Sam Mason, $2,000. 4 Issued Invoice # 602 to Hastings who purchased a new safe on account. $3,800 Cost of Merchandise Sold was $1,250. 5 Purchased office supplies, check # 6289, $620. 6 Purchased inventory from Key Supplies Co., $5,500. terms 1/10, 1/30 7 Paid UPS $317 cash for delivery of the inventory purchased on December 7 Jake deposited an additional $8,000 cash in the business. 8 Returned damaged Inventory to Key Supplies Co., $500 8 Received $2,500 cash, an advance payment for locksmith services. 9 Unlocked a safe for a customer and received $1,000 cash. 9 Bought a new computer (equipment) from Office Depot on account, $1,967 10 Sold 2 safes and received cash, $2,200. Cost of Merchandise Sold was $800. 11 Purchased 5 safes to restock inventory on account from Brinks Co, $4,187 terms, 2/5. n/45. 12 Customer returned one of the safes purchased on December 10, refunded the customer $1,000 cash. Cost of Merchandise Sold was $475. 13 Paid Verizon for wireless telephone services, $559, check # 6290. 14 Paid Key Supplies Co for the purchase on December 6. less return and discount, check # 6291 14 Received cash on account, $1,500, From Nathan Dean. Dean did not pay his November invoice #590 within the credit terms 2/10. The discount was forfeited. 15 Recorded cash sales for the store from the 1st to the 15th, $13,908. Cost of Merchandise Sold was $4,783. 16 Received $1,900 from Hastings on account. 17 Paid Office Depot on account, $500, check # 6292. 18 Performed locksmith services on account for Larry Contractor, $700. 19 Paid electricity bill for December, check #6293, $1,835. 19 Paid for Domino's pizza delivery for the December office party, check #6294, $175 20 Jake withdrew $13,000 for a vacation. 25 Paid the water bill for December, check #6295, $120. 25 Paid Brinks Co. on account, $2,500, check #6296. 26 Paid part time employees their salary, $3,850. 27 Received cash on account from Larry Contractor, $700. Recorded cash sales for the store from the 16th to the 30th, $8.735. Cost of 30 Merchandise Sold was $2,784 JW's Lock & Key Chart of Accounts Liabilities 201 Accounts Payable 203 Refunds Payable 205 Unearned Service Revenue Assets 101 Cash 105 Accounts Receivable 110 Inventory 112 Estimated Returns Inventory 115 Office Supplies 117 Prepaid Insurance 120 Equipment 121 Accum. Depreciation - Equipment Owner's Equity 301 Jake Walters, Capital 311 Jake Walters, Withdrawal Revenues 401 Service Revenue 405 Sales Revenue 410 Sales Discounts Forfeited Expenses 501 Cost of Merchandise Sold 502 Advertising Expense 505 Depreciation Expense 507 Insurance Expense 508 Office Supplies Expense 509 Salary Expense 511 Rent Expense 512 Telephone Expense 513 Utilities Expense 525 Miscellaneous Expense Other Misc. 999 Income Summary