BOA 1111 Bookkeeping Course Project Chapters 5 7 Accounting Cycle Merchandising Company Express Fashion has the following chart of accounts Assets 101 Cash 111 Accounts Receivable (A R) 121 Merchandise Inventory 131 Supplies 133 Prepaid Insurance 135 Prepaid Advertising 141 Equipment 142 Accumulated Depreciation Equip Liabilities 201 Accounts Payable (A P) 229 Salaries Payable 231 Sales Tax Payable Owners Equity 311 T Lashay, Capital 312 T Lashay, Drawing 399 Income Summary Revenue 401 Sales 402 Sales Returns and Allowances Cost of Goods Sold 501 Purchases 502 Freight In 503 Purchases Returns and Allowances 504 Purchases Discounts Expenses 611 Advertising Expense 614 Depreciation Expense Equip 617 Insurance Expense 623 Janitorial Services Expense 629 Rent Expense 632 Salaries Expense 635 Supplies Expense 638 Telephone Expense 644 Utilities Expense The following transactions were completed by Express Fashion during the month of October Oct 1 1 Signed a three month radio advertising contract with cable station, The CW, for $4,800 Issued Check 601 for $4,200 to pay Capital City Properties the monthly rent issued Check 602 to pay the full amount in advance 2 Received $520 from Marshall Green, a credit customer, in payment on his account 2 Issued Check 603 for $17,820 to remit the sales tax owed for July through September to the State Tax Commission 2 Issued Check 604 for $7,673 40 to Design Splendor, a creditor, in payment of Invoice 9387 ($7,830), less a cash discount of $156 60 3 Sold merchandise on account for $2,480 plus sales tax of $124 to Ian Phelps, Invoice 241 1 4 Issued Check 605 for $1,050 to Cinco Supply Co for supplies 4 Issued Check 606 for $8,594 60 to Modern Style, a creditor, in payment of Invoice 5671 ($8,770), less a cash discount of $175 40 5 Collected $1,700 on account from Will Stefan, a credit customer 5 Issued Check 607 for salaries accrued on September 30, $4,084 5 Accepted a return of merchandise from Ian Phelps The merchandise was originally sold on Invoice 241, dated October 3 issued credit memo 18 for $630, which includes sales tax of $30 5 Issued Check 608 for $1,666 to Fashion Threads, a creditor, in payment of Invoice 3292 ($1,700), less a cash discount of $34 6 Had cash sales of $18,600 plus sales tax of $930 during October 1 6 8 Received a check from James Highley, a credit customer, for $832 to pay the balance he owes 9 Sold merchandise on account for $2,050 plus sales tax of $102 50 to Erin Brunston, Invoice 242 10 Issued Check 609 for $1,445 to pay Central City Journal for a newspaper advertisement that appeared in October 11 Purchased merchandise on account for $4,820 from A Fashion Star, Invoice 942, dated October 8 terms are 2 10, n 30 12 Issued Check 610 for $375 to pay freight charges to Able Freight Company, the trucking company that delivered the merchandise from A Fashion Star on September 27 and October 11 13 Had cash sales of $12,300 plus sales tax of $615 during October 8 13 15 Sold merchandise on account for $1,940 plus sales tax of $97 to James Highley, Invoice 243 16 Purchased discontinued merchandise from Discount Fashion paid for it immediately with Check 611 for $6,420 16 Received $510 on account from Ian Phelps, a credit customer 16 Issued Check 612 for $4,723 60 to A Fashion Star, a creditor, in payment of Invoice 9422 ($4,820), less a cash discount of $96 40 18 Issued Check 613 for $7,200 Terrence Lashay as a withdrawal for personal use 20 Had cash sales of $13,500 plus sales tax of $675 during October 15 20 2 22 Issued Check 614 to Capital City Utilities for $1,112 to pay the monthly electric bill 24 Sold merchandise on account for $820 plus sales tax of $41 to Marshall Green, Invoice 244 25 Purchased merchandise on account for $3,380 from Fashion Threads, Invoice 3418, dated October 23 terms are 2 10, n 30 26 Issued Check 615 to Midwestern Telephone for $780 to pay the monthly telephone bill 27 Had cash sales of $14,240 plus sales tax of $712 during October 22 27 29 Received credit memo 175 for $430 from Fashion Threads, for defective goods that were returned The original purchase was recorded on October 25 29 Sold merchandise on account for $3,120 plus sales tax of $156 to Will Stefan, Invoice 245 30 Purchased merchandise for $4,020 from Modern Style, Invoice 5821, dated October 26 terms 1 10, n 30 31 Issued Check 616 for $475 to City Janitors for October janitorial services 31 Had cash sales of $1,700 plus sales tax of $85 for October 29 31 Instructions Record each transaction in the appropriate journal Post the column totals and the individual components of the Other Accounts column in the Sales Journal, Purchases Journal, Cash Receipts Journal, and Cash Payments Journal to the general ledger and subsidiary ledgers, if applicable Post the individual entries from the general journal to the general ledger and the subsidiary ledgers Prepare a schedule of accounts receivable and a schedule of accounts payable as of October 31, 2016 Copy the ending account balances in the general ledger to the trial balance column of the work sheet Complete the Adjustments section of the work sheet using the following information a On October 31, an inventory of the supplies showed that items costing $3,240 were on hand Record an adjustments for the supplies used in October 3 On September 30, 2016, the company purchased a six month insurance policy for $8,400 Record an adjustment for the expired insurance in October On October 1, the company signed a three month advertising contract for $4,800 with a local TV station and paid the full amount in advance Record an adjustment for the expired advertising in October On April 1, 2016, the company purchased equipment for $83,000 The equipment was estimated to have a useful life of five years and a salvage value of $12,500 Record an adjustment for depreciation on the equipment for October using the straight line (SL) method Based on a physical count, ending merchandise inventory was determined to be $81,260 Complete the remaining columns of the work sheet and determine the amount for net income (or net loss) Prepare a classified income statement, statement of owners equity, and a classified balance sheet for October 31, 2016 Journalize and post the adjusting and closing entries 10 Prepare a post closing trial balance as of October 31, 2016

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BOA 1111 Bookkeeping Course Project Chapters 5-7 Accounting Cycle Merchandising Company Express Fashion has the following chart of accounts: Assets 101 Cash 111 Accounts Receivable

BOA 1111 Bookkeeping Course Project Chapters 5-7 Accounting Cycle Merchandising Company

Express Fashion has the following chart of accounts:

Assets

101 Cash 111 Accounts Receivable (A/R) 121 Merchandise Inventory 131 Supplies 133 Prepaid Insurance 135 Prepaid Advertising 141 Equipment 142 Accumulated Depreciation-Equip

Liabilities

201 Accounts Payable (A/P) 229 Salaries Payable 231 Sales Tax Payable

Owners Equity

311 T. Lashay, Capital 312 T. Lashay, Drawing 399 Income Summary

Revenue

401 Sales 402 Sales Returns and Allowances

Cost of Goods Sold

501 Purchases 502 Freight In 503 Purchases Returns and Allowances 504 Purchases Discounts

Expenses

611 Advertising Expense 614 Depreciation Expense-Equip 617 Insurance Expense 623 Janitorial Services Expense 629 Rent Expense 632 Salaries Expense 635 Supplies Expense 638 Telephone Expense 644 Utilities Expense

The following transactions were completed by Express Fashion during the month of October:

Oct 1 1 Signed a three-month radio advertising contract with cable station, The CW, for $4,800;

Issued Check 601 for $4,200 to pay Capital City Properties the monthly rent.

issued Check 602 to pay the full amount in advance. 2 Received $520 from Marshall Green, a credit customer, in payment on his account. 2 Issued Check 603 for $17,820 to remit the sales tax owed for July through September

to the State Tax Commission.

2 Issued Check 604 for $7,673.40 to Design Splendor, a creditor, in payment of Invoice

9387 ($7,830), less a cash discount of $156.60.
3 Sold merchandise on account for $2,480 plus sales tax of $124 to Ian Phelps, Invoice

#241.

4 Issued Check 605 for $1,050 to Cinco Supply Co. for supplies.

4 Issued Check 606 for $8,594.60 to Modern Style, a creditor, in payment of Invoice 5671

($8,770), less a cash discount of $175.40.
5 Collected $1,700 on account from Will Stefan, a credit customer.

5 Issued Check 607 for salaries accrued on September 30, $4,084. 5 Accepted a return of merchandise from Ian Phelps. The merchandise was originally sold

on Invoice 241, dated October 3; issued credit memo 18 for $630, which includes sales

tax of $30.

5 Issued Check 608 for $1,666 to Fashion Threads, a creditor, in payment of Invoice 3292

($1,700), less a cash discount of $34.
6 Had cash sales of $18,600 plus sales tax of $930 during October 1 6.

8 Received a check from James Highley, a credit customer, for $832 to pay the balance

he owes.
9 Sold merchandise on account for $2,050 plus sales tax of $102.50 to Erin Brunston,

Invoice #242.
10 Issued Check 609 for $1,445 to pay Central City Journal for a newspaper advertisement

that appeared in October.
11 Purchased merchandise on account for $4,820 from A Fashion Star, Invoice 942, dated

October 8; terms are 2/10, n/30.
12 Issued Check 610 for $375 to pay freight charges to Able Freight Company, the trucking

company that delivered the merchandise from A Fashion Star on September 27 and

October 11.
13 Had cash sales of $12,300 plus sales tax of $615 during October 8 13.

15 Sold merchandise on account for $1,940 plus sales tax of $97 to James Highley, Invoice

#243.
16 Purchased discontinued merchandise from Discount Fashion; paid for it immediately

with Check 611 for $6,420.

16 Received $510 on account from Ian Phelps, a credit customer. 16 Issued Check 612 for $4,723.60 to A Fashion Star, a creditor, in payment of Invoice

9422 ($4,820), less a cash discount of $96.40. 18 Issued Check 613 for $7,200 Terrence Lashay as a withdrawal for personal use. 20 Had cash sales of $13,500 plus sales tax of $675 during October 15 20.

22 Issued Check 614 to Capital City Utilities for $1,112 to pay the monthly electric bill.

24 Sold merchandise on account for $820 plus sales tax of $41 to Marshall Green, Invoice

#244.
25 Purchased merchandise on account for $3,380 from Fashion Threads, Invoice 3418,

dated October 23; terms are 2/10, n/30.
26 Issued Check 615 to Midwestern Telephone for $780 to pay the monthly telephone bill.
27 Had cash sales of $14,240 plus sales tax of $712 during October 22 27.

29 Received credit memo #175 for $430 from Fashion Threads, for defective goods that

were returned. The original purchase was recorded on October 25.

29 Sold merchandise on account for $3,120 plus sales tax of $156 to Will Stefan, Invoice

#245.
30 Purchased merchandise for $4,020 from Modern Style, Invoice 5821, dated October 26;

terms 1/10, n/30.
31 Issued Check 616 for $475 to City Janitors for October janitorial services.

31 Had cash sales of $1,700 plus sales tax of $85 for October 29 31.

Instructions

Record each transaction in the appropriate journal.
Post the column totals and the individual components of the Other Accounts column in the

Sales Journal, Purchases Journal, Cash Receipts Journal, and Cash Payments Journal to the

general ledger and subsidiary ledgers, if applicable.
Post the individual entries from the general journal to the general ledger and the subsidiary

ledgers.
Prepare a schedule of accounts receivable and a schedule of accounts payable as of October

31, 2016.
Copy the ending account balances in the general ledger to the trial balance column of the

work sheet.
Complete the Adjustments section of the work sheet using the following information:

a. On October 31, an inventory of the supplies showed that items costing $3,240 were on hand. Record an adjustments for the supplies used in October.

On September 30, 2016, the company purchased a six-month insurance policy for $8,400. Record an adjustment for the expired insurance in October.
On October 1, the company signed a three-month advertising contract for $4,800 with a local TV station and paid the full amount in advance. Record an adjustment for the expired advertising in October.
On April 1, 2016, the company purchased equipment for $83,000. The equipment was estimated to have a useful life of five years and a salvage value of $12,500. Record an adjustment for depreciation on the equipment for October using the straight-line (SL) method.
Based on a physical count, ending merchandise inventory was determined to be $81,260.

Complete the remaining columns of the work sheet and determine the amount for net income (or net loss).
Prepare a classified income statement, statement of owners equity, and a classified balance sheet for October 31, 2016.
Journalize and post the adjusting and closing entries.

10.Prepare a post-closing trial balance as of October 31, 2016.