Computer Solutions, Inc.

Retail business dealing in sales of computers and equipment. In addition, the company provides

installation and servicing of computer systems. The clientele includes wholesale and retail

businesses, professionals, and private individuals. It is both a merchandising and a service

business. It is owned by a small number of investors from Inman, South Carolina, with John

Jones as the controlling investor.

The following journals should be included in your accounting for the company:

$$ Sales Journal

$$ Cash Receipts Journal

$$ Purchases Journal

$$ Cash Payments Journal

$$ General Journal

The trial balance for November is included. The accounts receivable and accounts payable

ledgers for November are also included. Cash sales are recorded at the end of each week. All

sales on account are subject to terms of $2/10,$ n$/30.$ All purchases on account are subject to

terms of $3/15,$ n$/30.$Totals of the Special Journals should be posted to the General Ledger

weekly.

Instructions

$1.$ Post the balances from the trial balance to the appropriate General Ledger accounts.

$2.$ Post the balances from the accounts receivable and accounts payable totals for

November to the ledgers.

$3.$ Post all transactions for December to the appropriate journals and ledgers.

$4.$ Prepare a trial balance for December.

$5.$ Prepare a schedule of accounts receivable and accounts payable for the end of

December.

$6.$ Journalize and post the adjusting entries based on the following information.

a$.$ Allowance for Doubtful accounts should be $10\%$ of total accounts receivable for the

year.

b$.$ Inventory at December $31$st is:

$$ Computers

$$ Other computer equipment

$$ Office supplies

$$ Store supplies

c$.$ Insurance expired December $31$st

d$.$ Depreciation is straight line

$$ Building $20$ years

$$ Office Equipment $7$ years

$$ Store Equipment $5$ years

e$.$ Accrued Salaries $-3$ days

$7.$ Prepare financial statements for year end

$8.$ Journalize and post$-$closing entries

$9.$ Prepare a post$-$closing trial balance

Trial Balance

November $30,20$XX

Cash $$112,029\mathrm{.}41$

Petty Cash $300\mathrm{.}00$

Accounts Receivable $16,320\mathrm{.}75$

Allowance for Doubtful Accounts $924\mathrm{.}00$

Inventory $$ Computers $410,993\mathrm{.}97$

Inventory $$ Other Computer Equipment $235,610\mathrm{.}87$

Store Supplies $1126\mathrm{.}50$

Office Supplies $200\mathrm{.}75$

Prepaid Insurance $7779\mathrm{.}75$

Land $30,000\mathrm{.}00$

Building $112,500\mathrm{.}00$

Accumulated Depreciation $$ Building $16,875\mathrm{.}00$

Office Equipment $8223\mathrm{.}17$

Accumulated Depreciation $$ Office Equipment $3524\mathrm{.}22$

Store Equipment $1171\mathrm{.}52$

Accumulated Depreciation $$ Store Equipment $702\mathrm{.}91$

Accounts Payable $7083\mathrm{.}00$

Salaries Payable

Federal Income Tax Payable

FICA Tax Payable

Stat Unemployment Tax Payable

Federal Unemployment Tax Payable

Cash Dividend Payable

Notes Payable $37,500\mathrm{.}00$

Common Stock, $$10$ PAR $202,500\mathrm{.}00$

Preferred Stock, $4\%$ $$100$ PAR $45,000\mathrm{.}00$

Paid In Excess $$ Common Stock $37,500\mathrm{.}00$

Paid In Excess $$ Preferred Stock $15,000\mathrm{.}00$

Retained Earnings $51,244\mathrm{.}66$

Cash Dividends $11,025\mathrm{.}00$

Sales $$ Computers $284,530\mathrm{.}50$

Sales $$ Other Computer Equipment $317,233\mathrm{.}50$

Sales $$ Computer Services $83,210\mathrm{.}25$

Sales Returns & Allowances $298\mathrm{.}00$

Sales Discounts $1468\mathrm{.}22$

Freight Expense $707\mathrm{.}60$

Sales Salaries Expense $47,814\mathrm{.}75$

Advertising Expense $16,854\mathrm{.}75$

Depreciation Expense $$ Building $15,468\mathrm{.}75$

Depreciation Expense $$ Office Equipment $1076\mathrm{.}85$

Depreciation Expense $$ Store Equipment $214\mathrm{.}78$

Office Supplies Expense

Store Supplies Expense

Salaries Expense $42,652\mathrm{.}50$

Payroll Taxes Expense $9940\mathrm{.}44$

Utilities Expense $5200\mathrm{.}66$

Repairs & Maintenance Expense $2844\mathrm{.}75$

Property Taxes Expense $7254\mathrm{.}30$

Bad Debt Expense

Insurance Expense

Professional Fees Expense

Interest Expense $3750\mathrm{.}00\_\_\_\_\_\_\_\_\_\_\_\_$

$1,102,828\mathrm{.}041,102,828\mathrm{.}04$

Accounts Receivable Schedule

November, $20$XX

Advantage Learning Center, LLC$.395\mathrm{.}25$

Dilfer$$s Bar & Grill $2345\mathrm{.}25$

Sports Now Bar $--------$

Green Energy Company $--------$

Mountain View Realtors, Inc. $2400\mathrm{.}00$

Nest Home Builders $1575\mathrm{.}00$

Lucky Dog Trainers $390\mathrm{.}75$

Pumping Iron Gym $3075\mathrm{.}00$

Preston Smith, CPA $1302\mathrm{.}75$

Great Smiles Dental Group $---------$

Waves Boat Sales & Service $561\mathrm{.}75$

Zane Construction Company $4275\mathrm{.}00$

Accounts Payable Schedule

November $20$XX

D & R Computers $1522\mathrm{.}50$

Krull Store Supplies & Equipment $--------$

Mega Computer Supply, Inc. $3010\mathrm{.}50$

Ritz & Associates, Attorneys $--------$

Supplies Incorporated $2550\mathrm{.}00$

Transactions For December

Record each of the following transactions in the appropriate journal.

Dec. $1$ Received a check for $$2,352\mathrm{.}00$ from Gulfview Realtors, Inc. in payment of our

invoice of November $22$ for $$2,400\mathrm{.}00,$ less discount. $($Reminder: All invoices bear

terms of $2/10,$ n$/30).$

Dec $1$ Sold merchandise on account to South Texas Dental Group, Invoice No$.707$:

computers, $$561\mathrm{.}75$; peripherals, $$506\mathrm{.}25$; total $$1,068\mathrm{.}00.$

Dec. $1$ Issued Check No$.1102$ for $$1,492\mathrm{.}05$ to D&R Computers in payment of its

November invoice of $$1,522\mathrm{.}50$ for computers, less discount.

Dec. $2$ Purchased store supplies on account from Kupta Store Supplies &Supplies & Equipment

Company for $$296\mathrm{.}25.$