Balances in subsidiary ledgers as of March 1 are as follows:

Accounts Receivable:

Bach Co.: $1,800

Danmark Co.: --

Young Co.: --

Accounts Payable:

Banmark Co.: $2,000

Johnsons Co.: --

Manny's Garage: --

Thomas Co.: --

Payroll is paid monthly:

FICA rate: OASDI 6.2% on $117,000; Medicare 1.45% on all earnings

SUTA rate: 4.8% on $7,000

FUTA rate: 0.6% on $7,000

SIT rate: 7%

FIT: Use the table provided at the end of the practice set.

The payroll register for January and February is provided. In March, salaries are as follows:

Jim Reed: $3,860

Emma Hyde: $4,580

Sue Bolton: $4,530

Your tasks are to do the following:

1. 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.

March 201X:

March 1: Bach paid balance owed, no discount.

March 2: Purchased merchandise from Thomas Company on account, $8,000; terms 1/10, n/30.

March 2: Paid $10 from the petty cash fund for cleaning package, voucher no. 18 (consider it a cleaning expense).

March 3: Sold merchandise to Young Company on account, $8,000, invoice no. 51; terms 3/10, n/30.

March 5: Paid $7 from petty cash fund for postage, voucher no. 19.

March 6: Sold merchandise to Young Company on account, $8,000, invoice no, 52; terms 3/10, n/30.

March 8: Paid $11 from the petty cash fund for first aid emergency, voucher no. 21.

March 9: Purchased merchandise from Thomas Company on account, $4,000; terms 1/10, n/30

March 9: Paid $9 for delivery expense from petty chash fund, voucher no. 21.

March 9: Sold more merchandise to Young Company on account, $6,000, invoice no. 53; terms 3/10, n/30.

March 9: Paid cleaning service, $100, check no. 110.

March 10: Young Company returned merchandise costing $3,200 from invoice no. 52; the Elegant Dress Shop issued crefit memo no. 10 to Young Company for $3,200.

March 11: Purchased merchandise from Johnsons Company on account, $14,000; terms 3/15, n/60.

March 12: Paid Thomas Company invoice dated March 2, check no. 111.

March 13: Sold $5,000 of merchandise for cash.

March 14: Returned merchandise to Johnsons Company in the amount of $1,000; the Elegant Dress Shop issued debt memo no. 4 to Johnsons Company.

March 14: pais $2 from the petty cash fund for delivery expense, voucher no. 22.

March 15; Paid taxes due to FICA (OASDI and Medicare) and FIT for February payroll, check no. 112.

March 15: Bridget withdrew $250 for her own personal expenses, check no. 114.

March 16: Received payment from Young Company for invoice no. 51, $8,000.

March 16: Sold merchandise to Bach Company on account, $4,600, invoice no. 54; terms 3/10, n/30.

March 21: Purchased delivery truck on account from Manny's Garage, $19,700.

March 22: Sold merchandise to Young Company on account, $5,000, invoice no. 55; terms 3/10, n/30.

March 23: Paid Johnsons Company the balance owed, check no. 115.

March 24: Sold merchandise to Bach Company on account, $5,000, invoice no. 56; terms 3/10, n/30.

March 25: Purchased merchandise for $1,800, check no. 116.

March 27: Purchased merchandise from Danmark Company on account, $5,000; terms 1/10, n/30.

March 28: Bach Company paid invoice no. 54 dated March 16.

March 29: Purchased merchandise from Thomas Company on account, $9,000, invoice no. 57; terms 3/10, n/30.

March 30: Sold merchandise to Danmark Company on account, $9,000, invoice no. 57; terms 3/10, n/30.

March 30: Issued check no. 117 to replenish the petty cash fund to the same level. Assume no shortage or overage.

March 30: Recorded payroll in payroll register.

March 30; Journalized payroll entry (to be paid on the 31st).

March 30: Journalized employer's payroll tax expense.

March 31: Paid payroll checks no. 118, no. 119, and no. 120.

Additional Data:

a./b. Ending merchandise inventory, $14,580.

c. During March, rent expired, $550.

d. Truck depreciated, $300.

e. Rental income earned, $250 (one month's rent from subletting).

f. Bridget Duval's dress shop is located at 1 Milgate Rd., Marblehead, MA 01945. Its identification number is 33-4158215.

THE ELEGANT DRESS SHOP POST-CLOSING TRIAL BALANCE FEBRUARY 28, 201x Cash Petty Cash Accounts Receivable Merchandise Inventory Prepaid Rent Delivery Truck 23 64 80 5500 180000 4900 00 65000 12000 00 umulated Depreciation, Truck Accounts Payable FIT Payable FICA-OASDI Payablo FICA-Medicare Payable SIT Payable SUTA Payable FUTA Payable Unearned Rent B. Duval, Capital 42100 26970 5100 0680 1299270 Tatals 2217|G 801|22 | 69180 Balances in subsidiary ledgers as of March 1 are as follows: Accounts Receivable Accounts layable Bach Co. 1,800 DannakC $2,000 Danmark CoJohnsos Co Young Co._ -Manny's Garage Thomas Co Payroll is paid monthly FICA rate SUTA rate FUTA rate SIT rate FIT OASDI 6.2% on $117,000 Medicare 1.45% on all earnings 4.8% on $7,000 0.5% on $7,000 7% Use the table provided at the erd of this practice set. THE ELEGANT DRESS SHOP POST-CLOSING TRIAL BALANCE FEBRUARY 28, 201x Cash Petty Cash Accounts Receivable Merchandise Inventory Prepaid Rent Delivery Truck 23 64 80 5500 180000 4900 00 65000 12000 00 umulated Depreciation, Truck Accounts Payable FIT Payable FICA-OASDI Payablo FICA-Medicare Payable SIT Payable SUTA Payable FUTA Payable Unearned Rent B. Duval, Capital 42100 26970 5100 0680 1299270 Tatals 2217|G 801|22 | 69180 Balances in subsidiary ledgers as of March 1 are as follows: Accounts Receivable Accounts layable Bach Co. 1,800 DannakC $2,000 Danmark CoJohnsos Co Young Co._ -Manny's Garage Thomas Co Payroll is paid monthly FICA rate SUTA rate FUTA rate SIT rate FIT OASDI 6.2% on $117,000 Medicare 1.45% on all earnings 4.8% on $7,000 0.5% on $7,000 7% Use the table provided at the erd of this practice set