Corner Dress Shop The this Mini Practice Set will help you review all the key concepts of the accounting Loch took over the business now known as The Corner Dress Shop on January 1, 2022. 1 evcle for a merchandising company, along with the integration of payroll. Betty purchased the business name and all assets except cash from her Aunt Marion, who had run it for over ten years. Certain liabilities were assumed by Betty's new busi- information. It is your task to complete the accounting cycle for March 2022. You are the bookkeeper of The Corner Dress Shop and have gathered the follow- Men of the deal. THE CORNER DRESS SHOP TRIAL BALANCE FEBRUARY 28, 2022 Account Titles and Description Cr. Cash Perry Cash Accounts Receivable Office Supplies Prepaid Rent Prepaid Insurance GST Prepaid Inventory Computer and Office Equipment Dr. 30 7 7 5 31 5000 8 291 85 62430 1 800 00 1 000 00 436 34 8 30 900 500 000 261 12 73 900 61 58 12 000 00 34000 4 788 99 11 08 82 408 79 Acc. Dep'nComputer & Office Equipment Computer Software Acc. Dep'n-Computer Software Delivery Truck Acc. Dep'n-Delivery Truck Accounts Payable Income Taxes Payable EI Payable CPP Payable Medical Plan Payable Charitable Donations Payable GST Collected Rent Received in Advance Betty Loeb, Capital Betty Loeb, Withdrawals Sales Cost of Goods Sold Wages Expense 8 10 30 112 00 1 80 00 2 313 65 600 00 48 0 78 80 7 30 000 59 8 6 5 05 CPP Expense EI Expense Insurance Expense Rent Expense 19 0 7 3 38 18 12 000 8 10 30 47 6 92 20 000 1 800 00 261 12 Depn ExpenseComputer & Office Equipment Dep'n Expense-Software Depn Expense-Delivery Truck 61 58 Accounting Expense 34000 146000 118 929 10 118 929 10 Balances in subsidiary ledgers as of February 28: Accounts Receivable* Ronald Co. $5,538.00 Sally's Store 2,753.85 Accounts Payable" Blew Co. Dresses by Shelley Silk Magic $2,543.77 1,510,22 735.00 "Includes 5% GST. Payroll is paid monthly, and employee claim codes are unchanged. The payroll register for January and February is provided on pages 582-583. In March, salaries are as follows (all deductions are the same unless indicated): Mel Case $ 1,860 Assume all income taxes are calculated as 20% of gross wages. For CPP and El assume 0.0495 and 0.0188, respec- tively. (Remember to include the calculation for CPP exemption of $3,500 per year.) 2,900 Jane Holl Jackie Moore 4,300 Required a. Set up a general ledger, accounts receivable ledger, accounts payable ledger, aux- iliary petty cash record, and payroll register. (Before beginning, be sure to update the ledger accounts on the basis of information given in the trial balance for February 28.) b. Journalize all transactions during March, using the special journals discussed in the text. Assume this company uses the perpetual inventory method. The practice ser can be completed using either method of accounting for inventory. If no specific method is indicated by your instructor, use the perpetual method. Assume the cost of all inventory is 75% of its selling price. c. Prepare the payroll register for March. d. Update the accounts payable and accounts receivable subsidiary ledgers for March e. Post to the general ledger. f. Prepare a trial balance on a worksheet and complete the worksheet as of March 31, 2022. g. Prepare an income statement, statement of owner's equity, and classified balance sheet. h. Journalize the adjusting and closing entries. i. Post the adjusting and closing entries to the ledger. j. Prepare a post-closing trial balance. The chart of accounts for The Corner Dress Shop is provided on the next page Chart of Accounts Assets 1110 Cash 1115 Petty Cash 1120 Accounts Receivable 1135 Office Supplies 1140 Prepaid Rent 1145 Prepaid Insurance 1150 HST Prepaid 1210 Inventory 1330 Computer and Office Equipment 1335 Acc. Dep'n.-Computer & Office Equipment 1340 Computer Software 1345 Acc. Dep'n.-Computer Software 1350 Delivery Truck 1355 Acc. Dep'n.-Delivery Truck Liabilities 2100 Accounts Payable 2200 Accrued Wages 2330 Income Taxes Payable 2335 El Payable 2340 CPP Payable 2350 Medical Plan Payable 2360 Charitable Donations Payable 2400 HST Collected 2500 Rent Received in Advance Owner's Equity 3110 Betty Loeb, Capital 3120 Betty Loeb, Withdrawals Revenue 4110 Sales 4140 Sales Discounts 4150 Sales Returns & Allowances Cost of Goods Sold 5040 Cost of Goods Sold 1. Expenses 5400 Wages Expense 5430 El Expense 5440 CPP Expense 5500 Postage Expense 5510 Insurance Expense 5520 Cleaning Expense 5530 Rent Expense 5540 Delivery Expense 5550 Dep'n. Expense-Computer and Ofice Equipment 5560 Dep'n. Expense-Software 5570 Dep'n. Expense-Delivery Truck 5590 Accounting Expense 5595 Miscellaneous Expense 31