CASH PAYMENTS JOURNAL Page 1 DATE Check Cash 2020 No. ACCOUNT DEBITED POST REF Other Accounts Accounts Payable DR. DR. CR. 1001 Pent expense 5700.00 5700.00Item ID H - 101 Item Description Halloween Purchases Cost of Merchandise Sold Inventory Unit Total Unit Total Unit Total Date Qty Cost Cost Qty Cost Cost Qty Cost Cost Item ID M - 101 Item Description Milk chocolate Purchases Cost of Merchandise Sold Inventory Unit Total Unit Total Unit Total Date Qty Cost Cost Qty Cost Cost Qty Cost Cost 24PURCHASES JOURNAL Page 1 DATE ACCOUNT CREDITED POST Accounts Merchandise OTHER 2020 REF Payable CR. Inventory DR. ACCOUNT DR. POST REF AmountNo. 1001 1001 Date To Oct 1 20 20 For Amount Balance Forward Pay to the Deposit 15,000 .00 Order of Thunderbird mall $ 5,100. 00 Deposit 21000.00 Sub Total 34 000.00 Dollars Current Check 5700.00 Balance 30,300 00 For Please put your name here No. 1002 1002 Date To 20 20 For Amount Balance Forward 30, 300. 00 Pay to the Deposit Order of $ Deposit Sub Total Dollars Current Check Balance For No. 1003 1003 Date To 20 20 For Amount Balance Forward Pay to the Deposit Order of $ Deposit Sub Total Dollar: Current Check Balance For 26On form 1 you are being told to record an investment the owner made in the business. We have seen this type of transaction since chapter 1. How does this transaction affect the business? We will have more money than we did before (we had none because this is a brand- new business). Since the business received cash, we must record this in the cash receipts journal. Everything we put there must involve a debit to cash. Why did we get the money? The owner invested it in the business. We do not have a column to show that, so we use the Other column (a credit). Whenever we use an "Other" column we must find an account in the chart of accounts to use in the Account Credited or the Account Debited column (depends on which journal we are in). Once we put the amount in both columns (debits equal credits) and we have filled in the name of the account (or the business name if we had used an Accounts Payable column) we then look at the column headings to see if any of them are shaded indicating we must also take the amount from that column and also record it somewhere else. The header of the Cash debit column is shaded reminding us we need to take the amount from that column into the check book and record it as a deposit in the stub portion. CHOCOLATE NIRVANA Done - checkbook Interoffice Memo Done- Cash vecipts Journal Cash recipform yournap To: checkbook Bookkeeper Date: October 1, 2020 Please: Record my personal investment into the business checking account, CR inv 101 $15,000.00 Zueta J. We are then ready to move on to form 2. We again are being told that we have received money. Which journal should we use to record that? What is the one column in that journal that we MUST use? Looking at the form, what is the credit column we must use? We have gone to the bank and borrowed money that we will need to pay back in the future. Look at the chart of accounts. What is the best option? This is not money the owner is investing in the business. Once we have the debit and credit amounts filled in and selected the best account to use, did we use any column where the header was shaded? Where do we have to take it? CHOCOLATE NIRVANA Do Interoffice Memo Form 2 To: Bookkeeper Date: October 1, 2020 Please: Record the deposit into the checking account representing a 2 year bank loan from Boot Hill Savings & Loan, CR inv 102, $21,000 Zueta J.\fItem ID T - 101 Item Description Thanksgiving Purchases Cost of Merchandise Sold Inventory Unit Total Unit Total Unit Total Date Qty Cost Cost Qty Cost Cost Qty Cost Cost 25On form 3 we are told to issue a check or to write a check. Which journal should we use? This will be the first time we have used the Cash Payments Journal. Which column MUST be used for every transaction recorded in the Cash Payments Journal? Cash credit. By writing this check we will have less money than we did before. Now, why did we write the check? If we are paying for something that will get used up by the end of the month, look at the chart of accounts for the best expense account to match what it says on the form. If we are paying for something that will get used up over time, but we will probably have some of it for longer than the current month, we should look for a current asset. Remember, since chapter 1 we have been expected to use a current asset anytime we have purchased supplies or insurance. If we are paying for something that tends to cost quite a bit more, we will have it for longer than a year, and normally it does not gradually get used up so that we have less of it, we just use it, we should be looking for the best match in the Property, Plant and Equipment section. Once we have selected the best account to match the transaction, we fill in the account name in the Account Debited column. We now have matching debits and credits and the account name filled in. Are any of the columns highlighted? We need to take the cash amount from the cash credit column into the check book and write out the matching check - 1001 and show it as a subtraction in the stub portion. CHOCOLATE NIRVANA Cash payments Journal Interoffice Memo checkbook Form 3 To: Bookkeeper Date: October 1, 2020 Please: Issue check #1001 to Thunderbird Mall for rent for the month of October $5,700 Zueta J. Continue on with the next forms, using the same thinking process and recording them first in the correct journal, and then any additional places needed. Interoffice Memo Form 4 To: Bookkeeper Date: October 1, 2020 Please: Issue check #1002 to D & D Shelving for the purchase of 12 shelving units at $1,000 each and a cash register for $3,000 for a total of $15,000 (Enter $11,400 as one item - they are similar things) Zueta J. 7No. 1007 1007 Date To 20 20 For Amount Balance Forward Pay to the Deposit Order of $ Deposit Sub Total Dollars Current Check Balance For No. 1008 1008 Date To 20 20 For Amount Balance Forward Pay to the Deposit Order of $ Deposit Sub Total Dollars Current Check Balance For No. 1009 1009 Date To 20 20 For Amount Balance Forward Pay to the Deposit Order of $ Deposit Sub Tota Dollars Current Check Balance For 28Chocolate Nirvana Practice set for ACCT 200 Queta Johnson is about to open a new business - Chocolate Nirvana. It will be a small chocolate specialties store. The purpose of this practice set is to allow you the chance to see how each of the separate components we have worked on this semester fit together. As you complete the set, you may find it necessary to look back at what we learned in various chapters to help remember exactly what to do. Instructions 1 Journalize each form into ONE correct journal (review chapter 5) Purchase Journal = you purchased something on account Cash Receipts Journal = you received money for any reason Cash Payments Journal = you issued a check for any reason General Journal = when none of the special journals work Remember you must have debits equaling credits in ALL journals 2 As you journalize each form, did you affect a control account? Accounts Payable - also take it into the Accounts Payable Subsidiary Ledger Cash - also take it into the Checkbook Deposit (Cash Receipts Journal) add it in the stub area Check (Cash Payments Journal) write the check, subtract in stub area Merchandise Inventory - go to the inventory sheets, use FIFO (chapter 7) 3 Complete each form entirely, and in order, before moving on to the next form As you work on each form, you should go through a mental process to determine how to properly record it. 5CHOCOLATE NIRVANA Interoffice Memo Form 5 To: Bookkeeper Date: October 1, 2020 Please: Issue check #1003 to Noc Overage Insurance for a policy covering Oct 1, 2020 through March 31, 2021, $1,000 Zueta J. CHOCOLATE NIRVANA Interoffice Memo Form 6 To: Bookkeeper Date: October 5, 2020 Please: Issue check #1004 to Machines Lid for purchase of a copier - $2,50 and a computer - $900, for a total of $3,400 (Again enter as just one amount) Zueta J. On form 7, are we told to issue a check? No. We are buying something but will not be paying for it until later. What journal do we use for this? We will need to use a control account so we need the name of the business so we will know where to post it in the subsidiary ledger after we complete getting it recorded in a journal. The first step is ALWAYS to record it in a journal. CHOCOLATE NIRVANA Interoffice Memo Form 7 To: Bookkeeper Date: October 5, 2020 Please: Charged office supplies from Fireplace Supplies $345 Zueta J. CHOCOLATE NIRVANA Interoffice Memo Form 8 To: Bookkeeper Date: October 5, 2020 Please: Issue check #1005 to PDQ Supplies for store supplies $720 Zueta J. 8CHOCOLATE NIRVANA Chart of Accounts ASSETS REVENUE Current Assets 410 Sales 100 Cash 112 Office Supplies 113 Store Supplies COST OF MERCHANDISE SOLD (COMS) 114 Prepaid Insurance 510 Cost of Merchandise Sold 115 Prepaid Advertising Merchandise Inventory OPERATING EXPENSES Property, Plant & Equipment Selling Expenses 150 Office Equipment 610 Advertising Expense 151 Accumulated Depreciation - Office Eq 615 Depreciation Exp - Store Eq 160 Store Equipment 620 Salaries Expense 161 Accumulated Depreciation - Store Eq 625 Store Supplies Expense 650 Rent Expense LIABILITIES Administrative Expenses Current Liabilities 660 Depreciation Exp - Office Eq 210 Accounts Payable 665 Insurance Expense 211 Interest Payable 670 Payroll Tax Expense 213 Sales Tax Payable 675 Office Supplies Expense 214 Employee's Federal Income Tax Payable 680 Telephone Expense 215 Social Security Tax Payable 685 Utilities Expense 216 Medicare Tax Payable 217 FUTA Tax Payable OTHER EXPENSE 218 SUTA Tax Payable 810 Interest Expense 219 Salaries Payable Non-current 250 Notes Payable - Non Current OWNERS' EQUITY 310 Queta Johnson, Capital 311 Queta Johnson, DrawingNo. 1010 1010 Date To 20 20 For Amount Balance Forward Pay to the Deposit Order of $ Deposit Sub Total Dollars Current Check Balance For No. 1011 1011 Date To 20 20 For Amount Balance Forward Pay to the Deposit Order of $ Deposit Sub Total Dollars Current Check Balance ForGENERAL JOURNAL Page 3 DATE REF. Debit 2020 DESCRIPTION POST. Credit Closing Entries IN 18 8 8 IN 8 TH IN TE IN TA Ta To Too Ti To To TE TE TNT= To To Too TNo. 1004 1004 Date To 20 20 For Amount Balance Forward Pay to the Deposit Order of $ Deposit Sub Total Dollars Current Check Balance For No. 1005 1005 Date To 20 20 For Amount Balance Forward Pay to the Deposit Order of $ Deposit Sub Total Dollars Current Check Balance For No. 1006 1006 Date To 20 20 For Amount Balance Forward Pay to the Deposit Order of $ Deposit Sub Total Dollars Current Check Balance For 27GENERAL JOURNAL Page 1 DATE 2020 DESCRIPTION POST REF. DEBIT CREDIT GENERAL JOURNAL Page DATE POST. 2020 DESCRIPTION REF. Debit Credit Adjusting Entries 8 8 8 IN & TN N TN IN TA Ta To Too TE To To TE To TNT= To To TItem ID C - 101 Item Description Christmas Purchase Cost of Merchandise Sold Inventory Unit Total Unit Total Unit Total Date Qty Cost Cost Qty Cost Cost Qty Cost Cost Item ID D - 101 Item Description Dark Chocolate Purchases Cost of Merchandise Sold Inventory Unit Total Unit Total Unit Total Date Qty Cost Cost Qty Cost Cost Qty Cost Cost 23ACCOUNTS PAYABLE SUBSIDIARY LEDGER Name Antwerp Supreme Address 337 Prumer Str., Antwerp, Belgium Date 2020 Item Post . Ref. Debit Credit Balance Name Fireplace Supplies Address 368 Express Place, Westminster, SD 58307 Date Item Post. 2020 Ref . Debit Credit Balance Name TA & A Bell Address 251 381st St, Westminster, SD 58307 Date Post. 2020 Item Ref. Debit Credit Balance Name XY Energy Address 461 2nd St, Westminster, SD 58307 Date 2020 Item Post . Debit Credit Balance 22Check Figures - Chocolate Nirvana Purchase Journal Accounts Payable 95,334.70 Merchandise Inventory 93,277.70 Other 2,057.00 Cash Receipts Journal Other 36,000.00 Merchandise Inventory / COGS 84,711.12 Sales - Store Sales 144, 151.25 Sales Tax Payable 10,090.60 Cash 190,241.85 Cash Payments Journal Other 34,526.50 Accounts Payable 59,556.20 Cash 94,082.70 After posting your journals here are some selected balances: Cash 96, 159.15 Merchandis 8,566.58 Accounts Payable 35,778.50 After computing payroll total net pay for all employees 9,827.06 End of month activities: Work Sheet: Unadjusted Trial Balance 238, 136.29 Adjustments 1,917.07 Adjusted Trial Balance 238,706.69 Income Statement (very bottom) 144, 151.25 Balance Sheet (very bottom ) 131,594.06 Income Statement: Sales 144, 151.25 Gross Profit 59,440.13 Total Operating Expenses 22,308.86 Net Income 37,038.62 Statement of Owner's Equity: Queta Johnson, October 31, 2016 45,038.62 Balance Sheet: Total Current Assets 106, 194.06 Total Property, Plant, & Equipment 18, 115.00 Total Assets 124,309.06 Total Current Liabilities 59, 144.69 Total Non-Current Liabilities 20, 125.75 Total Liabilities 79,270.44 Total Liabilities plus Owner's Equity 124,309.06 Post-Closing Trial Balance: Debits and credit 124,594.06