At the beginning of November, Madison decides to expand her business by selling fine European mixers. The owner of Batter Blender Supply Co. has approached Madison to become the exclusive distributor of these fine mixers in her state. The current cost of a mixer is $580, and Madison plans to sell each mixer for $1,200. Each appliance has a serial number and can be easily identified. Madison uses the perpetual inventory system to account for these fine mixers. She also decides to start using special journals and subsidiary ledgers to help keep track of her new customers and vendors, sales and purchases, and cash flows. (Hint: Refer to Chapter 11 to calculate the cost of inventory.) The following transactions occurred during the month of November Nov. 4 Bought five mixers on account from Batter Blender Supply Co. for $ 2,900, terms n/30. 6 Paid $75 freight on the November 4 purchase. Check 158. I 9 Bought four mixers on account from Batter Blender Supply Co. for $ 2,320, terms n/30. 10 Madison is concerned that there is not enough cash available to pay for all of the mixers purchased. She invests an additional $2,000 cash in Sweet Treats. 11 Paid $60 freight on the November 9 purchase. Check 159. 15 Madison issued a check to her assistant for all the help at the elementary school on October 30. (Recall this amount was accrued at the end of October.) Check 160. 20 Paid a $155 cell phone bill (Hint: Use Utilities Expense). Check 161. 21 Paid Batter Blender the amount due from the November 4 purchase. Check 162 22 Collected $300 from the October 30 transaction with Newbury Elementary School. 23 Three mixers are sold to Peter's Pastries on account for $3,600, terms n/30. Invoice 1011. (Hint You must record both the revenue and expense components on all sales transactions.) Madison decides to operate Sweet Treats as a sole proprietorship beginning on October 8, with her year end at December 31. She purchased a new cell phone to use only for business operations. She also created a checklist to help her remember which elements of the accounting cyde need to be completed daily, monthly, and yearly. Daily (October) Record transactions in the general journal and post to the general ledger. (November & December) Record transactions in the four special journals, as needed-cash receipts journal, cash payments joumal, purchases joumal, and sales joumal. Use the general journal to record anything that does not go into the special journals. (November & December) Post transactions into the two subsidiary ledgers, as needed - the accounts receivable subsidiary ledger and accounts payable subsidiary ledger. Use the general ledger to post anything that comes directly from the general joumal. Monthly: Journalize and post adjusting entries. Complete a worksheet for each month. (November & December) Post special journals totals to the necessary general ledger accounts. Yearly: Create financial statements for the year end December 31* - multi-step income statement, owner's equity statement, balance sheet, and statement of cash flows. Journalize and post the closing entries. Prepare a post-closing trial balance. Madison continues to stay in touch with her grandmother during the first few months of operation. She appreciates that her grandmother has been so supportive of her. Madison has dreams of opening up a local Sweet Treats shop when she graduates from college. She wants to hire more employees and start offering more classes. INSTRUCTIONS 1. Record the following transactions according to Madison's checklist above. Be sure to read any new details given prior to each months' transactions. 2. Prepare any necessary worksheets or forms according to Madison's checklist above. 3. Record all information in the provided spreadsheets. Be sure to include headers, dates, explanations, and totals when appropriate. Add rows as needed. 4. Follow all recording, joumalizing, and posting rules provided in your textbook. November Worksheet Dr. Cri Tral Balance Account Titles Dr. Cri Cash Accounts Receivable Inventory Baking Supplies Prepaid Insurance Equipment Accum. Depr. Equipment Accounts Payable Salaries and Wages Payable Interest Payable Notes Payable Owner's Capital Owner's Drawings Service Revenue Sales Revenue Sales Journal Cash Receipts Journal AR Sub Ledger Inventory Ledger AP Sub Ledger October Wort November Works D Purchases Journal P1 Inventory Dr. Accounts Payable cr Date Account Credited Terms Ref. November Totals Accounts Purchases Journal P2 Inventory Dr. Ref. Accounts Payable Cr. Date Account Credited Terms 4 5 16 17 18 19 20 21 22 Chart of Accounts General Journal General Ledger Purchases Journal Cash Payments Journ B D E Cash Payments Journal G CP1 Date Chk. No. Other Accounts Account Debited Ref. Accounts Payable Dr. Dr. Cash Cr November Totals Accounts Cash Payments Journal ) 3 9 0 1 2 Date Chk. No. Other Accounts Account Debited Ref. Dr. Accounts Payable Dr. Cash Cr. Chart of Accounts General Journal General Ledger Purchases Journal Cash Payments Journal Sales Journal At the beginning of November, Madison decides to expand her business by selling fine European mixers. The owner of Batter Blender Supply Co. has approached Madison to become the exclusive distributor of these fine mixers in her state. The current cost of a mixer is $580, and Madison plans to sell each mixer for $1,200. Each appliance has a serial number and can be easily identified. Madison uses the perpetual inventory system to account for these fine mixers. She also decides to start using special journals and subsidiary ledgers to help keep track of her new customers and vendors, sales and purchases, and cash flows. (Hint: Refer to Chapter 11 to calculate the cost of inventory.) The following transactions occurred during the month of November Nov. 4 Bought five mixers on account from Batter Blender Supply Co. for $ 2,900, terms n/30. 6 Paid $75 freight on the November 4 purchase. Check 158. I 9 Bought four mixers on account from Batter Blender Supply Co. for $ 2,320, terms n/30. 10 Madison is concerned that there is not enough cash available to pay for all of the mixers purchased. She invests an additional $2,000 cash in Sweet Treats. 11 Paid $60 freight on the November 9 purchase. Check 159. 15 Madison issued a check to her assistant for all the help at the elementary school on October 30. (Recall this amount was accrued at the end of October.) Check 160. 20 Paid a $155 cell phone bill (Hint: Use Utilities Expense). Check 161. 21 Paid Batter Blender the amount due from the November 4 purchase. Check 162 22 Collected $300 from the October 30 transaction with Newbury Elementary School. 23 Three mixers are sold to Peter's Pastries on account for $3,600, terms n/30. Invoice 1011. (Hint You must record both the revenue and expense components on all sales transactions.) Madison decides to operate Sweet Treats as a sole proprietorship beginning on October 8, with her year end at December 31. She purchased a new cell phone to use only for business operations. She also created a checklist to help her remember which elements of the accounting cyde need to be completed daily, monthly, and yearly. Daily (October) Record transactions in the general journal and post to the general ledger. (November & December) Record transactions in the four special journals, as needed-cash receipts journal, cash payments joumal, purchases joumal, and sales joumal. Use the general journal to record anything that does not go into the special journals. (November & December) Post transactions into the two subsidiary ledgers, as needed - the accounts receivable subsidiary ledger and accounts payable subsidiary ledger. Use the general ledger to post anything that comes directly from the general joumal. Monthly: Journalize and post adjusting entries. Complete a worksheet for each month. (November & December) Post special journals totals to the necessary general ledger accounts. Yearly: Create financial statements for the year end December 31* - multi-step income statement, owner's equity statement, balance sheet, and statement of cash flows. Journalize and post the closing entries. Prepare a post-closing trial balance. Madison continues to stay in touch with her grandmother during the first few months of operation. She appreciates that her grandmother has been so supportive of her. Madison has dreams of opening up a local Sweet Treats shop when she graduates from college. She wants to hire more employees and start offering more classes. INSTRUCTIONS 1. Record the following transactions according to Madison's checklist above. Be sure to read any new details given prior to each months' transactions. 2. Prepare any necessary worksheets or forms according to Madison's checklist above. 3. Record all information in the provided spreadsheets. Be sure to include headers, dates, explanations, and totals when appropriate. Add rows as needed. 4. Follow all recording, joumalizing, and posting rules provided in your textbook. November Worksheet Dr. Cri Tral Balance Account Titles Dr. Cri Cash Accounts Receivable Inventory Baking Supplies Prepaid Insurance Equipment Accum. Depr. Equipment Accounts Payable Salaries and Wages Payable Interest Payable Notes Payable Owner's Capital Owner's Drawings Service Revenue Sales Revenue Sales Journal Cash Receipts Journal AR Sub Ledger Inventory Ledger AP Sub Ledger October Wort November Works D Purchases Journal P1 Inventory Dr. Accounts Payable cr Date Account Credited Terms Ref. November Totals Accounts Purchases Journal P2 Inventory Dr. Ref. Accounts Payable Cr. Date Account Credited Terms 4 5 16 17 18 19 20 21 22 Chart of Accounts General Journal General Ledger Purchases Journal Cash Payments Journ B D E Cash Payments Journal G CP1 Date Chk. No. Other Accounts Account Debited Ref. Accounts Payable Dr. Dr. Cash Cr November Totals Accounts Cash Payments Journal ) 3 9 0 1 2 Date Chk. No. Other Accounts Account Debited Ref. Dr. Accounts Payable Dr. Cash Cr. Chart of Accounts General Journal General Ledger Purchases Journal Cash Payments Journal Sales Journal