Chart of Accounts

Current Assets
10000	Cash
11000	Accounts Receivable

Long-Term	Liabilities
27000	Mortgage Payable
27100	Note Payable

12000	Inventory Cookies
12100	Inventory Baskets
13100	Supplies (Ribbon, Sticks, Cellophane)
13200	Shipping Supplies
14000	Prepaid Rent
14100	Prepaid Insurance
14200	Prepaid Advertising

Stockholders Equity
39003	Common Stock
39005	Retained Earnings
39007	Dividends

Revenue
40000	Sales

Long-Term Assets
15000	Computer Equipment
17000	Accumulated Depreciation Computer Equipment
15100	Delivery Van
17100	Accumulated Depreciation-Delivery Van

Expenses
50000	Cost of Goods Sold
60100	Legal Expense
60150	Supplies Expense
60200	Shipping Supplies Expense
60300	Insurance Expense
60350	Wages Expense
60400	Credit Card Expense
60500	Advertising and Promotion Expense
60550	Utility Expense
60600	Rent Expense
60650	Depreciation Expense
60700	Interest Expense
60750	Bank Service Fee

Current Liabilities
20000	Accounts Payable
21100	Note Payable Wells Fargo Bank
21200	Note Payable Office Mart
23100	Wages Payable
23200	Interest Payable
23300	Sales Tax Payable

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	Date	Deposit No. / Check No.	Description
	5/02/16		Courtney Cooper met with her lawyer and CPA for advice on starting the business. They decided that Ms. Cooper would organize the business as a corporation. The lawyer told Ms. Cooper to register the company name Courtneys Cookie Bouquet with the County of El Paso. In addition, Ms. Cooper will get an employer identification number (EIN) from the Internal Revenue Service and get a sales tax permit from the state of Texas. The lawyer agreed to prepare the Articles of Incorporation to be filed with the Secretary of State of Texas. The CPA has agreed to help Ms. Cooper set up her accounting system.
	5/02/16	Deposit #1	Ms. Cooper opened a business checking account at Wells Fargo Bank by depositing $35,000. The corporation issued her a stock certificate for 35,000 shares of common stock with no par value.
	5/03/16	Ck #1001	Ms. Cooper signed a one-year rental agreement with Reynolds Realtors for warehouse space. She was required to pay $2,400 for rent for the months of May 1, 2016 August 31, 2016.
	5/03/16	Ck #1002	Arranged for a general business liability insurance policy and paid $2,700 to State Penn Insurance. This premium is for twelve months coverage.
	5/04/16		Signed a one year note with Office Depot for a Computer that cost $3,600 and interest is 6%. There will be no residual value at the end of five years.
	5/05/16	Deposit #2	Signed a note payable to borrow $10,000 from Wells Fargo Bank. Interest is 9% annually and the note is to be repaid with interest in six months.
	5/05/16	Ck #1003	Purchased a delivery van for $16,000 from Marvins Motors. The estimated service life of this asset is 5 years. The residual (salvage value) is $1,000. This will be recorded as Delivery Van and depreciated accordingly.
	5/06/16	Ck #1004	Paid $600 to have Courtneys logo painted on the side of the van. This should be added to the cost of the van and depreciated over the life of the van.
	5/06/16	Ck #1005	Paid $500 for business cards, flyers, and posters. This will be recorded as prepaid advertising.
	5/08/16		Purchased $6,200 of merchandising inventory (cookies) from Courtneys Cookies on account.
	5/08/16		Purchased $2,900 of merchandise inventory (baskets) from Bonnies Baskets on account.
	5/13/16	Ck #1006	Ms. Cooper received and paid the $800 charge from her lawyer.
	5/14/16		Courtneys Cookie Bouquet is now open for business. Sales will be both retail and wholesale. Retail customers will purchase online and at the shop and will be charged an 8% sales tax. Wholesale customers are not charged a sales tax in the state of Texas. Ms. Cooper will allow major customers to put their purchases on account.
	5/14/16		Purchased $300 of supplies consisting of cellophane, ribbon and sticks to use in baskets on account.
	5/14/16	Ck #1007	Purchased shipping supplies of $400 for cash.
	5/14/16		Sold cookies to UTEP for Graduation Ceremonies for $4,000. The cost of the cookies is $1,700; the cost of the baskets is $500, supplies $50. UTEP does not have to pay sales tax on this purchase and they paid on account.
	5/16/16		Purchased additional cookies on account for $5,500.
	5/20/16	Deposit #3	Recorded internet sales for the first five days of operation. Sales totaled $6,000. The sales tax collected totaled $480. The $6,480 was deposited in the bank. The cost of merchandise sold was $4,200 (cookies were $3,900; baskets $300).
	5/22/16	Ck #1008	Received and paid the $300 invoice for supplies (cellophane and ribbon) purchased on 5/14/16.
	5/23/16		Ms. Cooper donated a cookie arrangement to the Humane Society fund raiser. She felt that this was a good way to advertise her new business. Her business was listed as a sponsor and a large ad was put in the fund raiser program. Cost of the cookies were $600 and the baskets were $100. Ms. Cooper considers this an advertising expense.
	5/23/16	Deposit #4	Received payment in full from UTEP. The payment was deposited in the bank.
	5/23/16	Ck #1009	Ms. Cooper paid her credit card bill for the month. The total was $350. $300 was for gas and $50 was for the decorative ribbon used in the Humane Society arrangement.
	5/23/16	Ck #1010	Paid for the baskets purchased from Bonnies Baskets on 5/08/16.
	5/23/16	Deposit #5	Internet and retail sales totaled $7,000 plus sales taxes of $560. The cost of the merchandise sold was $4,500 (cookies $3,500; baskets $1,000). The money was deposited in the bank.
	5/23/16	Ck #1011	Paid the balance due to Courtneys Cookies for the cookies. There are two invoices on 5/8/16 and 5/16/16.
	5/25/16	Deposit #6	Collected and deposited $2,484 of payments from retail credit customers of which $184 was sales tax. The Cost of the Merchandise Sold is $1,900 (cookies $1680, baskets $220)
	5/28/16		Received but did not pay the phone bill for the month, $120.
	5/31/16	Ck #1012	Paid the first monthly installment on the computer equipment. The payment amount is $318. Of this amount, $18 is for interest and $300 is for principal on the note payable. Make the check payable to Office Mart.
	5/31/16		Purchased cookies on account for $3,400.
	5/31/16	Ck #1013	Paid all sales tax owed for May to the Comptroller of Public Accounts.
	5/31/16	Ck #1014	Declared and paid a cash dividend of $100 to Courtney Cooper.

Once all journal entries are, record the following adjusting journal entries on the next page.

The following are the adjusting journal entries for the month of May.

Record Adjusting Entries: Record the following month end adjusting entries for the month of May. Write the journal entries in the practice set after the original journal entries. Here round all answers to the nearest cent.

$115 of supplies remained on hand.

$90 of shipping supplies remained on hand.

$1,000 of wages for the part-time help from Irenes Temp Services for May should be accrued.Do not worry about payroll taxes; Temp Services Inc. will handle these.

Make the necessary adjusting entries for one months depreciation for the van using Straight Line Depreciation.

Make the necessary adjusting entry for one months depreciation for the computer equipment using Straight Line Depreciation.

One month of the prepaid insurance has expired.

One month of the prepaid rent has expired.

Record the interest for the loan on Wells Fargo

$250 of prepaid advertising remains on hand

The interest on the computer has been recorded in journal entry #28 so you do not need to record it in the adjusting entry section