and General and Administrative Expenses increased from the previous year? counting KEEPING IT REAL SUAREZ COMPUTER CENTER Using the worksheet in Chapter 11 for Suarez Computer Center, journalize and post the adjusting entries and prepare the financial statements. Mini Practice Set The Fantastic Dress Shop Reviewing the Accounting Cycle for a Merchandise Company This practice set will help you review all the key concepts of a merchandise company, using the perpetual method of inventory valuation along with the integration of payroll, including the preparation of Form 941. Because you are the professional bookkeeper for the Fantastic Dress Shop, we have gathered the following information for you. It will be your task to complete the account ing cycle for March using the knowledge and skills that you have acquired in this course. The company uses the perpetual inventory method. w any Using the Perpetual Inventory THE FANTASTIC DRESS SHOP POST-CLOSING TRIAL BALANCE FERRULY 2011 2080 5.00 1000.00 1900.00 16000 120 000 Cash Petty Cash Accounts Receivable Merchandise Inventory Prepaid Rent Delivery Truck Accumulated Depreciation Truck Accounts Payable FIT Payable FICA-CASCI Payable FCA-Medicare Payable SIT Payable SUTA Payable FUTA Payable Linearned Rent B. Duval Capital 000 00 200000 BE600 1053 20 20070 G5100 85440 DOBO 100000 Totals 75580 Balances in subsidiary ledgers as of March 1 are as follows: $2,000 Accounts Receivable Bach Co. $1,800 Danmark Co. - co - Accounts Payable Danmark Co. Johnsons Co. Manny's Garage Thomas Co. Payroll is paid monthly: FICA rate OASDI 6.2% on $127.200 Medicare 1.45% on all earnings 4.8% on 57,000 0.6% on $7,000 SUTA rate FUTA rate SIT rate FIT Use the table provided at the end of this practice set. The payroll register for January and February is provided. In March, salaries are as follows: 53.860 Jim Reed Emma Hyde Sue Bolton 4,580 4.530 Your tasks are to do the following: Set up a general ledger, accounts receivable subsidiary ledger, accounts payable subsidiary ledger, auxiliary petty cash record, and payroll register. (Be sure to update ledger accounts based on information given in the post-closing trial balance for February 28 before beginning.) 2. Journalize the transactions, prepare the payroll register, and prepare the auxiliary petty cash record. 3. Update the accounts payable and accounts receivable subsidiary ledgers. 4. Post to the general ledger. 5. Prepare a trial balance on a worksheet and complete the worksheet. 6. Prepare an income statement, statement of owner's equity and classified balance sheet. 7. Journalize the adjusting and closing entries. 8. Post the adjusting and closing entries to the ledger. 9. Prepare a post-closing trial balance. 10. Complete Form 941 and sign it for the quarter ending March 31, 201X. Chart of Accounts for the Fantastic Dress Shop Assets Revenue 110 Cash 410 Sales 111 Petty Cash 412 Sales Returns and Allowances 112 Accounts Receivable 414 Sales Discount 114 Merchandise Inventory 416 Rental Income 116 Prepaid Rent Cost of Goods Sold 120 Dellvery Truck 121 Accumulated Depreciation, Truck 510 Cost of Goods Sold Expenses Liabilities 610 Sales Salaries Expense 210 Accounts Payable 611 Office Salaries Expense 212 Salaries Payable 612 Payroll Tax Expense 214 Federal Income Tax Payable 614 Cleaning Expense 216 FICA-OASDI Payable 218 FICA-Medicare Payable 616 Depreciation Expense, Truck 618 Rent Expense 220 State Income Tax Payable 620 Postage Expense 222 SUTA Tax Payable 622 Delivery Expense 224 FUTA Tax Payable 226 Unearned Rent 624 Miscellaneous Expense Owner's Equity 310 B. Duval, Capital 320 B. Duval, Withdrawals 330 Income Summary THE FANTASTIC DRESS SHOP PAYROLL REGISTER JANUARY AND FEBRUARY 201X Earnings and Marital Status Employees Cum Earnings Salary Ree OVT I Jim Reed Emma Hyde M-2 M 21000 210000 EEO000 300000 390000 390000 IITTI 9E0000 230000 Cum Gross Earnings II 210000 210000 330 000 330000 390000 300000 Totals for Jan 930000 930000 Jim Reed Emma Hyde Sue Bolton M-2 M-1 M- 0 210 000 21 00 00 21 00 00 330000 30000 33 00 00 3 90000 39000 390000 II gallo 00 93000 93looloo 2 10 000 420 000 3 30000 600000 3 900 00 z800.00 Totals for Feb 930000 1860000 comply using the Perpetual we Expe PAYROLL REGISTER Taxable Earnings FICA FICA Unge OASDI Medicare care ASDI ASDI Medicare Medicare F IT PT SIT Net Pay No DI TITI TULLI I II 210 000 210000 10000 130 20 30 45700014700 112235 330000 330000 3 30000 20460 14785 2500 23000 235735 390000 390 000 390o go 201305655 3990027 300 292965 TUTTI 930000 9300 90 930 000 590 60 9943573800 65100 720955 TITI 2 10 000 210 000 210000 130 20 30 45700014700 172 235 330000 330000 330000 204.60478525900 23100 255755 310 000 390 000 39000024180 5655 39900 27300 292 965 III 00651100 7209 55 850000 930000 30000 576 605 TIIIIIIIIIIII 210000 330 000 390000 2 0 0 0 0 0 0 0 0 1330000 390 000 290000 720000 2013 Mar 7800 092/ 1 Bach paid balance owed, no discount. 2 Purchased merchandise from Thomas Company on account, $8,000; terms 1/10,n/30. 2 Paid $10 from the petty cash fund for cleaning package, voucher no. 18 (consider it a cleaning expense). 3 Sold merchandise to Young Company on account, $8,000. Invoice no. 51; terms 3/10, 1/30. Cost of inventory, $2,510 5 Paid $7 from the petty cash fund for postage, voucher no. 19. 6 Sold merchandise to Young Company on account, 58.000, invoice no. 52: terms 3/10./30. Cost of inventory, $2,240. 8 Pald 511 from the petty cash fund for first aid emergency, voucher no 20. 9 Purchased merchandise from Thomas Company on account. 54,000: terms 1/10, 1/30. 9 Paid 59 for delivery expense from petty cash fund, voucher no 21. Relates to merchandise purchase. 9 Sold more merchandise to Young Company on account, 56,000, invece no. 53: terms 3/10 n/30. Cost of inventory, 51,970. 9 Paid cleaning service, $100, check no. 110. 10 Young Company returned merchandise sold for $3,200 from invoice no. 52; the Fantastic Dress Shop issued credit memo no. 10 to Young Company for $3,200. Cost of inventory returned, $1,025. 11 Purchased merchandise from Johnsons Company on account. 514.000terms 1/15, 1/60 12 Sold merchandise for $30,000 cash. Cost of inventory, 513,830. 12 Paldomas Company invoice dated March 2, check no. 111. 13 Sold 55.000 of merchandise for cash. Cost of Inventory, 52.900. 14 Returned merchandise to Johnson Company in the amount of $1.000; the Fantastic Dress Shop issued debit memo no. 4 to Johnsons Company 14 Pald 52 from the petty cash fund for delivery expense, voucher no. 22. Relates to merchandise purchase. 15 Pald taxes due for FICA (OASDI and Medicare) and FIT for February Payroll, check no. 112. 15 Bridget withdrew $250 for her own personal expenses, check no. 113. 15 Paid state income tax for February payroll, check no. 114 16 Received payment from Young Company for invoice no. 52, less discount and return. 16 Young Company paid invoice no. 51, 58.000. 16 Sold merchandise to Bach Company on account. 54,600, invoice no. 5: terms 3/10, 1/30 Cost of Inventory. 51.840. and General and Administrative Expenses increased from the previous year? counting KEEPING IT REAL SUAREZ COMPUTER CENTER Using the worksheet in Chapter 11 for Suarez Computer Center, journalize and post the adjusting entries and prepare the financial statements. Mini Practice Set The Fantastic Dress Shop Reviewing the Accounting Cycle for a Merchandise Company This practice set will help you review all the key concepts of a merchandise company, using the perpetual method of inventory valuation along with the integration of payroll, including the preparation of Form 941. Because you are the professional bookkeeper for the Fantastic Dress Shop, we have gathered the following information for you. It will be your task to complete the account ing cycle for March using the knowledge and skills that you have acquired in this course. The company uses the perpetual inventory method. w any Using the Perpetual Inventory THE FANTASTIC DRESS SHOP POST-CLOSING TRIAL BALANCE FERRULY 2011 2080 5.00 1000.00 1900.00 16000 120 000 Cash Petty Cash Accounts Receivable Merchandise Inventory Prepaid Rent Delivery Truck Accumulated Depreciation Truck Accounts Payable FIT Payable FICA-CASCI Payable FCA-Medicare Payable SIT Payable SUTA Payable FUTA Payable Linearned Rent B. Duval Capital 000 00 200000 BE600 1053 20 20070 G5100 85440 DOBO 100000 Totals 75580 Balances in subsidiary ledgers as of March 1 are as follows: $2,000 Accounts Receivable Bach Co. $1,800 Danmark Co. - co - Accounts Payable Danmark Co. Johnsons Co. Manny's Garage Thomas Co. Payroll is paid monthly: FICA rate OASDI 6.2% on $127.200 Medicare 1.45% on all earnings 4.8% on 57,000 0.6% on $7,000 SUTA rate FUTA rate SIT rate FIT Use the table provided at the end of this practice set. The payroll register for January and February is provided. In March, salaries are as follows: 53.860 Jim Reed Emma Hyde Sue Bolton 4,580 4.530 Your tasks are to do the following: Set up a general ledger, accounts receivable subsidiary ledger, accounts payable subsidiary ledger, auxiliary petty cash record, and payroll register. (Be sure to update ledger accounts based on information given in the post-closing trial balance for February 28 before beginning.) 2. Journalize the transactions, prepare the payroll register, and prepare the auxiliary petty cash record. 3. Update the accounts payable and accounts receivable subsidiary ledgers. 4. Post to the general ledger. 5. Prepare a trial balance on a worksheet and complete the worksheet. 6. Prepare an income statement, statement of owner's equity and classified balance sheet. 7. Journalize the adjusting and closing entries. 8. Post the adjusting and closing entries to the ledger. 9. Prepare a post-closing trial balance. 10. Complete Form 941 and sign it for the quarter ending March 31, 201X. Chart of Accounts for the Fantastic Dress Shop Assets Revenue 110 Cash 410 Sales 111 Petty Cash 412 Sales Returns and Allowances 112 Accounts Receivable 414 Sales Discount 114 Merchandise Inventory 416 Rental Income 116 Prepaid Rent Cost of Goods Sold 120 Dellvery Truck 121 Accumulated Depreciation, Truck 510 Cost of Goods Sold Expenses Liabilities 610 Sales Salaries Expense 210 Accounts Payable 611 Office Salaries Expense 212 Salaries Payable 612 Payroll Tax Expense 214 Federal Income Tax Payable 614 Cleaning Expense 216 FICA-OASDI Payable 218 FICA-Medicare Payable 616 Depreciation Expense, Truck 618 Rent Expense 220 State Income Tax Payable 620 Postage Expense 222 SUTA Tax Payable 622 Delivery Expense 224 FUTA Tax Payable 226 Unearned Rent 624 Miscellaneous Expense Owner's Equity 310 B. Duval, Capital 320 B. Duval, Withdrawals 330 Income Summary THE FANTASTIC DRESS SHOP PAYROLL REGISTER JANUARY AND FEBRUARY 201X Earnings and Marital Status Employees Cum Earnings Salary Ree OVT I Jim Reed Emma Hyde M-2 M 21000 210000 EEO000 300000 390000 390000 IITTI 9E0000 230000 Cum Gross Earnings II 210000 210000 330 000 330000 390000 300000 Totals for Jan 930000 930000 Jim Reed Emma Hyde Sue Bolton M-2 M-1 M- 0 210 000 21 00 00 21 00 00 330000 30000 33 00 00 3 90000 39000 390000 II gallo 00 93000 93looloo 2 10 000 420 000 3 30000 600000 3 900 00 z800.00 Totals for Feb 930000 1860000 comply using the Perpetual we Expe PAYROLL REGISTER Taxable Earnings FICA FICA Unge OASDI Medicare care ASDI ASDI Medicare Medicare F IT PT SIT Net Pay No DI TITI TULLI I II 210 000 210000 10000 130 20 30 45700014700 112235 330000 330000 3 30000 20460 14785 2500 23000 235735 390000 390 000 390o go 201305655 3990027 300 292965 TUTTI 930000 9300 90 930 000 590 60 9943573800 65100 720955 TITI 2 10 000 210 000 210000 130 20 30 45700014700 172 235 330000 330000 330000 204.60478525900 23100 255755 310 000 390 000 39000024180 5655 39900 27300 292 965 III 00651100 7209 55 850000 930000 30000 576 605 TIIIIIIIIIIII 210000 330 000 390000 2 0 0 0 0 0 0 0 0 1330000 390 000 290000 720000 2013 Mar 7800 092/ 1 Bach paid balance owed, no discount. 2 Purchased merchandise from Thomas Company on account, $8,000; terms 1/10,n/30. 2 Paid $10 from the petty cash fund for cleaning package, voucher no. 18 (consider it a cleaning expense). 3 Sold merchandise to Young Company on account, $8,000. Invoice no. 51; terms 3/10, 1/30. Cost of inventory, $2,510 5 Paid $7 from the petty cash fund for postage, voucher no. 19. 6 Sold merchandise to Young Company on account, 58.000, invoice no. 52: terms 3/10./30. Cost of inventory, $2,240. 8 Pald 511 from the petty cash fund for first aid emergency, voucher no 20. 9 Purchased merchandise from Thomas Company on account. 54,000: terms 1/10, 1/30. 9 Paid 59 for delivery expense from petty cash fund, voucher no 21. Relates to merchandise purchase. 9 Sold more merchandise to Young Company on account, 56,000, invece no. 53: terms 3/10 n/30. Cost of inventory, 51,970. 9 Paid cleaning service, $100, check no. 110. 10 Young Company returned merchandise sold for $3,200 from invoice no. 52; the Fantastic Dress Shop issued credit memo no. 10 to Young Company for $3,200. Cost of inventory returned, $1,025. 11 Purchased merchandise from Johnsons Company on account. 514.000terms 1/15, 1/60 12 Sold merchandise for $30,000 cash. Cost of inventory, 513,830. 12 Paldomas Company invoice dated March 2, check no. 111. 13 Sold 55.000 of merchandise for cash. Cost of Inventory, 52.900. 14 Returned merchandise to Johnson Company in the amount of $1.000; the Fantastic Dress Shop issued debit memo no. 4 to Johnsons Company 14 Pald 52 from the petty cash fund for delivery expense, voucher no. 22. Relates to merchandise purchase. 15 Pald taxes due for FICA (OASDI and Medicare) and FIT for February Payroll, check no. 112. 15 Bridget withdrew $250 for her own personal expenses, check no. 113. 15 Paid state income tax for February payroll, check no. 114 16 Received payment from Young Company for invoice no. 52, less discount and return. 16 Young Company paid invoice no. 51, 58.000. 16 Sold merchandise to Bach Company on account. 54,600, invoice no. 5: terms 3/10, 1/30 Cost of Inventory. 51.840