Complete this assignment using the Excel workbook provided, and submit your work by the end of Week 2, 11:59pm ET.

 

To get you started in your new role, Pat Simons has asked you to review necessary journal entries (JEs) and T account postings for the following transactions, which occurred in the month just ended. Use a perpetual inventory system. The debits and credits should equal and the entries should have proper impact on the accounts that are being used.  The journal entries should be written in proper format. The accounts should not be abbreviated.  Ensure that the entries are properly formatted with the names of the credited accounts indented and the proper description shown.  Review the associated T accounts and ensure that the journal entries are properly posted to the T accounts.  During this week, you are correcting any errors in the journal entries and T account postings.Please use the provided Excel spreadsheet to review the journal entries, T account postings, correct any errors and submit the corrected spreadsheet to BlackBoard. You are not creating correcting entries, you are changing (correcting) the entries that Pat created.

 

All the accounts that should be used during this project have a T account, if there is no T account, do not create one.

 

Please note that once you upload the spreadsheet, it will not look complete in the window, as long as you uploaded the full Excel spreadsheet, it will all be there for me to grade.

 

Fitchtown, Inc. operates with monthly accounting periods. All of the company's accounting work is completed through the end of April, and its ledgers show April 30 balances. Terms for all credit sales are 2/10, n/30, unless otherwise stated.

 

May	1	Issued Check No. 3410 to Q&R Management Co. in payment of the May rent, $3,710. (Use two lines to record the transaction. Charge 80% of the rent to Rent Expense—Selling Space and the balance to Rent Expense—Office Space.)
	2	Sold merchandise on credit to Cole Company, Invoice No. 8785, for $6,100 (cost is $4,100).
	2	Issued a $175 credit memorandum to Mercer Co. for defective (worthless) merchandise sold on April 28 and returned for credit. The total selling price (gross) was $4,725. NOTE: The $175 is the amount to credit and is the 100% amount of the item returned.
	3	Received a $798 credit memorandum from Preston Products for the return of merchandise purchased on April 29.
	4	Purchased the following on credit from Davis Supply Co.: merchandise, $37,072; store supplies, $574; and office supplies, $83. Invoice dated May 4, terms n/10 EOM.
	5	Received payment from Mercer Co. for the balance from the April 28 sale less the May 2 return and the discount.
	8	Issued Check No. 3411 to Preston Products to pay for the $7,098 of merchandise purchased on April 29 less the May 3 return and a 2% discount.
	9	Sold store supplies to the merchant next door at their cost of $350 cash.
	10	Purchased $4,074 of office equipment on credit from Davis Supply Co., invoice dated May 10, terms n/10 EOM.
	11	Received payment from Cole Company for the May 2 sale less the discount.
	11	Purchased $8,800 of merchandise from Henley, Inc., invoice dated May 10, terms 2/10, n/30.
	12	Received an $854 credit memorandum from Davis Supply Co. for the return of defective office equipment received on May 10.
	15	Issued Check No. 3412, payable to Payroll, in payment of sales salaries, $5,320, and office salaries, $3,150. Cashed the check and paid the employees.
	15	Cash sales for the first half of the month are $70,220 (cost is $38,200). (Cash sales are recorded daily but are recorded only twice here to reduce repetitive entries.)
	16	Sold merchandise on credit to Cole Company, Invoice No. 8786, for $3,990 (cost is $1,890).
	17	Purchased $13,650 of merchandise from Summit Corp., invoice dated May 14, terms 2/10, n/60.
	19	Issued Check No. 3413 to Henley, Inc., in payment of its May 10 invoice less the discount.
	22	Sold merchandise to Crane Services, Invoice No. 8787, for $6,850 (cost is $4,990), terms 2/10, n/60.
	23	Issued Check No. 3414 to Summit Corp. in payment of its May 14 invoice less the discount.
	24	Purchased the following on credit from Davis Supply Co.: merchandise, $8,120; store supplies, $630; and office supplies, $280. Invoice dated May 24, terms n/10 EOM.
	25	Purchased $3,080 of merchandise from Preston Products, invoice dated May 23, terms 2/10, n/30.
	26	Sold merchandise on credit to Crank Corp., Invoice No. 8788, for $14,210 (cost is $8,230).
	26	Issued Check No. 3415 to Perennial Power in payment of the May electric bill, $1,283.
	29	The company voted to issue and pay dividends today, in the amount of $7.000.
	30	Received payment from Crane Services for the May 22 sale less the discount.
	30	Issued Check No. 3417, payable to Payroll, in payment of sales salaries, $5,320, and office salaries, $3,150. Cashed the check and paid the employees.
	31	Cash sales for the last half of the month are $66,052 (cost is $42,500).

 

 

 

 

					Name
General Journal	Note that all entries are rounded to the nearest dollar
					GENERAL JOURNAL
Date		Account Titles and Explanation	Debit	Credit
May	1	Rent Expense- Selling Space		2,968
		Rent Expense- Office Space		742
			Cash					3,710
		Paid May's rent
	2	Accounts  Receivable- Cole		6,100
			Sales Revenue				6,100
		Cost of Goods Sold			4,100
			Merchandise Inventory			4,100
		Merchandise Sales on credit
	2	Sales Revenue				175
			Accounts Receivable-Mercer		175
		Goods returned from April 28
	3	Accounts Payable-Preston		798
			Merchandise Inventory			798
		returned goods purchased April 29
	4	Merchandise Inventory			37,729
			Accounts Payable-Davis Supply		37,729
		purchased goods invoiced May 4; terms n/10, EOM
	5	Cash					4,630
		Sales Discount				95
			Accounts Receivable-Mercer		4,725
		received payment less return and discount
	8	Accounts Payable-Preston		6,300
			Cash					6,174
			Merchandise Inventory			126
		paid for goods purchased April 29 within discount period
	9	Cash					350
			Sales Revenue				350
		received cash for store supplies sold to next door merchant
		Cost of Goods Sold			350
			Merchandise Invenory			350
	10	Office Equipment			4,074
			Accounts Payable-Davis Supply		4,074
		purchased goods invoiced May 10; terms n/10, EOM
	11	Cash					5,978
		Sales Discount				122
			Accounts Receivable-Cole		6,100
		Received payment of May 2 sale less discount
	11	Merchandise Inventory			8,800
			Accounts Payable-Henley		8,800
		purchased goods, invoiced for May 10; terms 2/10, n/30
	12	Accounts Payable-Davis Supply		854
			Merchandise Inventory			854
		Goods returned from May 10
	15	Salaries Expense-Sales			5,320
		Salaries Expense-Office			3,150
			Accounts Payable			8,470
		record employees' salaries
	15	Cash					70,220
			Sales Revenue				70,220
		record sales for the first half of the month
	16	Accounts Receivables-Cole		3,990
			Sales Revenue				3,990
		Cost of Goods Sold			1,890
			Merchandise Inventory			1,890
		record May 16 sale; terms 2/10, n/30
	17	Merchandise Inventory			13,650
			Accounts Payable-Summit		13,650
		purchased goods invoiced May 14; terms 2/10, n/60
	19	Accounts Payable-Henley		4,074
			Cash					3,993
			Sales Discounts			81
		Paid for goods invoiced May 10 within discount period
	22	Accounts Receivable-Crane		6,850
			Sales Revenue				6,850
		Cost of Goods				4,990
			Merchandise Inventory			4,990
		record May 22 sale; term 2/10, n/60
	23	Accounts Payable-Summit		13,650
			Cash					13,377
			Merchandise Inventory			273
		paid for goods invoiced May 14 within discount period
	24	Merchandise Inventory			8,120
		Store Supplies				630
		Office Supplies				280
			Accounts Payable-Davis		9,030
		purchased goods, invoiced May 24; terms n/10 EOM
	25	Merchandise Inventory			3,080
			Accounts Payable-Preston		3,080
		purchased goods, invoiced May 23; terms 2/10, n/30
	26	Accounts Receivable-Crank		14,210
			Sales Revenue				14,210
		Cost of Goods				8,230
			Merchandise Inventory			8,230
		record May 26 sale; terms 2/10, n/30
	26	Utilities Expense-Electric		1,283
			Cash					1,283
		record payment of May electric bill
	29	Common Stock				7,000
			Cash					7,000
		cash dividends declared and paid same day
	30	Cash					6,713
		Sales Discount				137
			Accounts Receivable-Crane		6,850
		received payment of May 22 sale less discount
	30	Salaries Expense-Sales			5,320
		Salaries Expense-Office			3,150
			Accounts Payable			8,470
		record employees' salaries
	31	Cash					66,052
			Sales Revenue				66,052
		record sales for the last half of the month
							$336,154	$336,154