BA211 Comprehensive Project Fall 2018 The TailSpin Pet Supply Company (TailSpin) is a wholesale company that purchases dog beds manufacturer and resells them to retail from a stores. The company has three inventory items: dog beds, medium dog beds, and large dog TailSpin uses a perpetual inventory system, method. They own land with a building, which into office and warehouse space. All expenses with the office are categorized as Administrative Expenses. All associated with the warehouse, which is used for the shipping and receiving the company, are categorized as Selling Expenses. In addition to the land and building, TailSpin also owns office furniture, equipment, and warehouse fixtures. The company uses one accumulated depreciation account for all the depreciable assets. small beds FIFO is divided associated expenses functions of The trial balance for TailSpin as of August 31, 2018 is as follows: TAILSPIN PET SUPPLY COMPANY Trial Balance August 31, 2018 Credit Debit Account $407,000 Cash 2500 Accounts Receivable 123,500 Merchandise Inventory Office Supplies 275 350 Warehouse Supplies Style TAILSPIN PET SUPPLY COMPANY Trial Balance August 31, 2018 Account Debit Credit Cash $407,000 0 Accounts Receivable 2500 Merchandise Inventory Office Supplies 123,500 275 Warehouse Supplies Land 20,000 780,000 125,000 Building Office Furniture and Equipment Warehouse Fixtures $194,000 Accumulated Depreciation Accounts Payable 100,000 Common Stock 298,925 Retaied Earnings Dividends 2,604,150 Sales Revenue Cost of Goods 1,061,450 Sold Page 1 of 4 Salaries Expense--Selling Utilities Expense--Selling Supplies Expense--Selling 270,000 32,000 Depreciation Expense-Selling Salaries Expense-Administrative 90,000 Utilities Expense- Administrative 25,000 Supplies Expense-Administrative Depreciation Expense-Administrative Total $3,247,075 $3,247,075 Merchandise Inventory as of August 31 consisted of: Quantity Item Unit Cost Total Cost 17,500 54,000 2,500 Small Dog Bed Medium Dog Bed Large Dog Bed Total 2 18 3,000 2,000 26 123,500 During the fourth quarter of their fiscal year, which is September through November, TAILSPIN completed the following transactions: Purchased dog beds on account from My Dog Blue, terms n/30, FOB Sep 1 destination 5,000 small dog beds at $9 each 7,500 medium dog beds at $19 each 2,500 large dog beds at $25 each Sold dog beds on account to CostCut, terms 2/10, n/30: 4,000 medium dog beds at $45 each 12 Paid utilities, $3,200 (60% selling, 40% administrative) 30 Requirements NOTE: Use the templates provided in the Forms and Templates folder 1. Open T-accounts and enter opening balances as of August 31, 2018 from the Trial Balance given at the beginning. 2. Update your T-accounts with the transactions for September through November listed above. v v-v Received a check from DogHouse Stores for full amount owed on Sep 28 5 sale Received a check from PetSuperSmart for full amount owed on Oct 1 sale. Purchased and paid for supplies: $325 for the office; $675 for the warehouse 8 2 10 15 Sold dog beds on account to Pets R Us, n/30: 2,000 small dog beds at $20 each Sold dog beds on account to Go-Dog Discount Stores, terms 1/10, n/30: 2,000 medium dog beds at $45 each 2,000 large dog beds at $65 each Received a check from Go-Dog Discount Stores for full amount owed on Oct 18 sale. 18 28 Paid salaries, $40,000 (75% selling, 25% administrative). Paid utilities, $2,670 (60% selling, 40% administrative). Paid amount due to My Dog Blue from Oct 5 purchase. Received a check from Pets R Us for full amount owed on Oct 15 sale. Paid dividends, $55,000. Sold dog beds on account to CostCut, terms 2/10, n/30: 4,500 small dog beds at $20 each 5,000 medium dog beds at $45 each Paid salaries, $40,000 (75% selling, 25% administrative). Paid utilities, $3,200 (60% selling, 40% administrative) 9 31 2 31 Nov5 15 15 27 30 30 Requirements NOTE: Use the templates provided in the Forms and Templates folder 1. Open T-accounts and enter opening balances as of August 31, 2018 from the Trial Balance given at the beginning 2. Open inventory records for the three inventory items and enter opening balances as of August 31, 2018. Complete the inventory records using the following transactions: Sep 1, 12, 15, 28; Oct 1, 5, 15, 18, and Nov 27 All changes saved in Drive Supplies Expnese - Administrative Deprecication Expense Administrative Supplies Expense - Selling Depreciation Expense Selling Selling Expense Administrative Service Revenue 7,500 medium dog beds at $19 each 2,500 large dog beds at $25 each Sold dog beds on account to CostCut, terms 2/10, n/30: 4,000 medium dog beds at $45 each Sold dog beds on account to PetSuperSmart, terms 2/10, n/30: 1,000 small dog beds at $20 each Received a check from CostCut for full amount owed on Sep 12 sale. Received a check from PetSuperSmart for full amount owed on Sep 15 sale. Sold dog beds on account to DogHouse Stores, terms 2/10, n/30: 3,500 medium dog beds at $45 each 1,500 large dog beds at $65 each Paid amount due to My Dog Blue from Oct 1 purchase. 12 15 20 23 28 30 Paid salaries, $40,000 (75% selling, 25% administrative). Paid utilities, $2,500 (60% selling, 40% administrative). Sold dog beds on account to PetSuperSmart, terms 2/10, n/30: 3,000 small dog beds at $20 each Purchased dog beds on account from My Dog Blue, terms n/30, FOB 30 30 Oct 1 destination: 5,000 small dog beds at $10 each 10,000 medium dog beds at $21 each 5,000 large dog beds at $27 each Page 000 Siiall aog beds at $20 each 5 Purchased dog beds on account from My Dog Blue, terms n/30, FOB destination: 5,000 small dog beds at $10 eaclh 10,000 medium dog beds at $21 each 5,000 large dog beds at $27 eackh Received a check from DogHouse Stores for full amount owed on Sep 28 sale. 5 Received a check from PetsuperSmart for full amount owed on Oct 1 sale. Purchased and paid for supplies: $325 for the office: $675 for the 8 10 BA211 Comprehensive Project Fall 2018 The TailSpin Pet Supply Company (TailSpin) is a wholesale company that purchases dog beds manufacturer and resells them to retail from a stores. The company has three inventory items: dog beds, medium dog beds, and large dog TailSpin uses a perpetual inventory system, method. They own land with a building, which into office and warehouse space. All expenses with the office are categorized as Administrative Expenses. All associated with the warehouse, which is used for the shipping and receiving the company, are categorized as Selling Expenses. In addition to the land and building, TailSpin also owns office furniture, equipment, and warehouse fixtures. The company uses one accumulated depreciation account for all the depreciable assets. small beds FIFO is divided associated expenses functions of The trial balance for TailSpin as of August 31, 2018 is as follows: TAILSPIN PET SUPPLY COMPANY Trial Balance August 31, 2018 Credit Debit Account $407,000 Cash 2500 Accounts Receivable 123,500 Merchandise Inventory Office Supplies 275 350 Warehouse Supplies Style TAILSPIN PET SUPPLY COMPANY Trial Balance August 31, 2018 Account Debit Credit Cash $407,000 0 Accounts Receivable 2500 Merchandise Inventory Office Supplies 123,500 275 Warehouse Supplies Land 20,000 780,000 125,000 Building Office Furniture and Equipment Warehouse Fixtures $194,000 Accumulated Depreciation Accounts Payable 100,000 Common Stock 298,925 Retaied Earnings Dividends 2,604,150 Sales Revenue Cost of Goods 1,061,450 Sold Page 1 of 4 Salaries Expense--Selling Utilities Expense--Selling Supplies Expense--Selling 270,000 32,000 Depreciation Expense-Selling Salaries Expense-Administrative 90,000 Utilities Expense- Administrative 25,000 Supplies Expense-Administrative Depreciation Expense-Administrative Total $3,247,075 $3,247,075 Merchandise Inventory as of August 31 consisted of: Quantity Item Unit Cost Total Cost 17,500 54,000 2,500 Small Dog Bed Medium Dog Bed Large Dog Bed Total 2 18 3,000 2,000 26 123,500 During the fourth quarter of their fiscal year, which is September through November, TAILSPIN completed the following transactions: Purchased dog beds on account from My Dog Blue, terms n/30, FOB Sep 1 destination 5,000 small dog beds at $9 each 7,500 medium dog beds at $19 each 2,500 large dog beds at $25 each Sold dog beds on account to CostCut, terms 2/10, n/30: 4,000 medium dog beds at $45 each 12 Paid utilities, $3,200 (60% selling, 40% administrative) 30 Requirements NOTE: Use the templates provided in the Forms and Templates folder 1. Open T-accounts and enter opening balances as of August 31, 2018 from the Trial Balance given at the beginning. 2. Update your T-accounts with the transactions for September through November listed above. v v-v Received a check from DogHouse Stores for full amount owed on Sep 28 5 sale Received a check from PetSuperSmart for full amount owed on Oct 1 sale. Purchased and paid for supplies: $325 for the office; $675 for the warehouse 8 2 10 15 Sold dog beds on account to Pets R Us, n/30: 2,000 small dog beds at $20 each Sold dog beds on account to Go-Dog Discount Stores, terms 1/10, n/30: 2,000 medium dog beds at $45 each 2,000 large dog beds at $65 each Received a check from Go-Dog Discount Stores for full amount owed on Oct 18 sale. 18 28 Paid salaries, $40,000 (75% selling, 25% administrative). Paid utilities, $2,670 (60% selling, 40% administrative). Paid amount due to My Dog Blue from Oct 5 purchase. Received a check from Pets R Us for full amount owed on Oct 15 sale. Paid dividends, $55,000. Sold dog beds on account to CostCut, terms 2/10, n/30: 4,500 small dog beds at $20 each 5,000 medium dog beds at $45 each Paid salaries, $40,000 (75% selling, 25% administrative). Paid utilities, $3,200 (60% selling, 40% administrative) 9 31 2 31 Nov5 15 15 27 30 30 Requirements NOTE: Use the templates provided in the Forms and Templates folder 1. Open T-accounts and enter opening balances as of August 31, 2018 from the Trial Balance given at the beginning 2. Open inventory records for the three inventory items and enter opening balances as of August 31, 2018. Complete the inventory records using the following transactions: Sep 1, 12, 15, 28; Oct 1, 5, 15, 18, and Nov 27 All changes saved in Drive Supplies Expnese - Administrative Deprecication Expense Administrative Supplies Expense - Selling Depreciation Expense Selling Selling Expense Administrative Service Revenue 7,500 medium dog beds at $19 each 2,500 large dog beds at $25 each Sold dog beds on account to CostCut, terms 2/10, n/30: 4,000 medium dog beds at $45 each Sold dog beds on account to PetSuperSmart, terms 2/10, n/30: 1,000 small dog beds at $20 each Received a check from CostCut for full amount owed on Sep 12 sale. Received a check from PetSuperSmart for full amount owed on Sep 15 sale. Sold dog beds on account to DogHouse Stores, terms 2/10, n/30: 3,500 medium dog beds at $45 each 1,500 large dog beds at $65 each Paid amount due to My Dog Blue from Oct 1 purchase. 12 15 20 23 28 30 Paid salaries, $40,000 (75% selling, 25% administrative). Paid utilities, $2,500 (60% selling, 40% administrative). Sold dog beds on account to PetSuperSmart, terms 2/10, n/30: 3,000 small dog beds at $20 each Purchased dog beds on account from My Dog Blue, terms n/30, FOB 30 30 Oct 1 destination: 5,000 small dog beds at $10 each 10,000 medium dog beds at $21 each 5,000 large dog beds at $27 each Page 000 Siiall aog beds at $20 each 5 Purchased dog beds on account from My Dog Blue, terms n/30, FOB destination: 5,000 small dog beds at $10 eaclh 10,000 medium dog beds at $21 each 5,000 large dog beds at $27 eackh Received a check from DogHouse Stores for full amount owed on Sep 28 sale. 5 Received a check from PetsuperSmart for full amount owed on Oct 1 sale. Purchased and paid for supplies: $325 for the office: $675 for the 8 10