Docking Project
3 Company Background & Scenario The Davenport Docking Corporation is a well-established, publicly-held corporation, operating as a wholesaler in the marine parts industry. Specifically, Davenport Docking purchases marine parts from manufacturers and sells them to large business customers. Most purchases and sales are on account, with trade credit terms specified in "Transactions" worksheet within this workbook You're a Davenport University student pursuing a bachelor's degree in business and employed at the Davenport Docking Corporation this semester as an intern. You've worked in various departments and on several projects so far, learning a lot 5 about the company's business operations Management seems impressed with your enthusiasm and the quality of your work The company's accountant has just been called away for a family emergency and will likely be absent for a month or so. The General Manager asks you to take over the accountant's regular duties on an interim basis. You're nervous about doing so, but i are confident that what you've learned in accounting class, plus your personal problem-solving skills, will make this a 6 successful experience. What a great learning opportunity, not to mention an enhancement to your resume! 7 IMPORTANT: To complete part 1: 8 1. Read All Instructions at the top of these tabs: Transactions, General Journal - ADJ, General Journal - CLOSING. 2. Enter journal entries from transactions tab into the general Journals pages 1-6. The inventory control tab needs to be 9 completed in order to enter certain journal entries 10 3. Enter adjusting entries in the general journal-ADJ tab 11 S. Enter 2 closing entries to the general journal closing tab using the trial balance closing tab amounts. 12 13 14 15 16 17 18 19 20 21 22 23 Case Background Products Chart of Accounts AR Ledger Chart of Accounts AP Ledge Select destination and press ENTER or choose Paste a. Av Paste Office Update To keep up-to-date with security updates, fixes, and improvements, choose Ch X fx Transom mounted deep lake fishing device B Product Name Fish Finders Propellers Downriggers Description Helm module using sonar to identify fish Propulsion unit designed specifically for V-drives Transom mounted deep lake fishing device 0 7 3 15 17 18 19 20 21 22 25 24 28 2 127 2 29 10 1 SP 34 HD Os Background Pro Chart of Accounts AR Ledger Chart Of A Solde de ENTER ar choose Paste Formulas Data Review Page Layout View Home Insert Draw Callbrl (Body) 11 AA no Paste B 7 U a A * Omice Update To keep up-to-date with security updates, fixes, and improvements, choose Check C5 X fx 7000 C B D A E NE Davenport Docking Corporation Chart of Accounts - Accounts Recelvable Ledger Account Name Four Winns Chris Craft Sea Ray Boston Whaler Donzi June Balances $ 7,000.00 $ 86,350.00 $ 65,000.00 $ 92,500.00 $ 300,000.00 12:1 22 123 24 25 125 32 125 20 20 30 Card Products Select destina ENERO sho Chart Accounts AR Ledger Chart of Act F Calibrl (Body) a. Av Paste I U B 3 Office Update To keep up-to-date with security updates, fixes, and improvements, choose -5 X & fx D E B Davenport Docking Corporation Chart of Accounts - Accounts Payable Ledger Account Name June Balances 5 5 7 B 9 10 11 12 13 14 15 Raydar Marine Acme Scotty DU Utility Company Staples $ 25,000.00 $362,500.00 $ 104,000.00 $ 3,300.00 $ 500.00 16 Office Update To keep up-to-date with security updates, fixes, and improvements, choos x & fx 81 1 Davenport Docking Corporation 2 Chart of Accounts - General Ledger 3 4 BALANCE SHEET ACCOUNTS 5 Assets 6 Current Assets 7 Acct # Account Name 8 100 Cash 9 102 Accounts Receivab 10 103 Allowance for Doubtful Accounts 11 104 Merchandise Inventory 12 105 Estimated Returns Inventory 13 106 Office Supplies 14 107 Prepaid Insurance 15 Other Assets 16 120 Investments - Trading 12 121 Investments - Available for Sale 18 122 investments - Held to Maturity 19 123 Valuation Allowance Property, Plant and Equipment 140 Land 145 Building 146 Accumulated Depreciation - Building 24 151 Equipment 152 Accumulated Depreciation - Equipment 25 153 Office Furniture 154 Accumulated Depreciation Office Furniture 2 Liabilities Current Llabilities 201 Accounts Payable 202 Wages Payable 203 Interest Payable 2 204 Dividends Payable 205 Uncarnud Rent 25 206 Customer Refunds Payable Cas Background Products Chart of Accounts A Ledger Select destination and proBNENTEH or choose Paste SERN 25 SNIS Chart BAN W 28 3 Office Update To keep up-to-date with security updates, foxes, and improvements, choc B1 x & fx 86 Long-Term Liabilitles 37 250 Notes Payable 38 251 Bonds Payable 39 252 Premium on Bonds Payable 40 253 Discount on Bonds Payable 41 252 Mortgage (Warehouse) Payable 42 Capital (Equity) 43 300 Common Stock, $1 Par, 100,000 Authorized; 40,000 shares issued/Outstanding 44 301 Pald in Capital - Excess of Par (PIC), Common Stock 45 330 Retained Earnings + 46 331 Cash Dividends 47 340 Treasury Stock 48 341 Pald in Capital - Excess of Par (PIC), Treasury Stock 49 342 Unrealized (Gain) Loss - Available for Sale 50 INCOME STATEMENT ACCOUNTS 51 Revenue 52 500 Sales 53 Cost of Goods Sold SA 600 Cost of Goods Sold 55 Operating Expenses 56 700 Wage Expense (hourly workers) 57 201 Salaries Expense (Exempt Staff) 58 702 Marketing Expense 59 703 Travel and Entertainment Expense 50 704 Bad Debt Expense 61 705 Property Tax Expense 62 705 Office Maintenance & Repair Expense 63 707 Legal Expenses 208 Insurance Expense 65 709 Utilities Expense 56 710 Office Supplies Expense 722 Telecommunications Expense 712 Depreciation Expense Equipment 69 713 Depreciation Expense-Office Furniture 79 Other income Case Background Products Chart of Accounts AR Ledger Select destion and ENTER o choose Paste Cha JAN w 28 x & fx B1 B 65 709 Utilities Expense 66 710 Office Supplies Expense 67 711 Telecommunications Expense 68 712 Depreciation Expense - Equipment 69 713 Depreciation Expense - Office Furniture 70 Other Income 71 800 Rent Income 72 801 Unrealized Gain - Trading Securities 73 802 Realized Gain - Investment Securities 74 Other Expenses 75 900 Interest Expense 76 901 Urealized Loss - Trading 77 902 Realized Loss - Investment Securities 78 Formulas Data Review View Page Layout Home Insert Draw X 11 Callbrl (Body) ' ' 25 Wrap Text 5 V Marge & Cont: Pasta BIU 3 Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates A3 4 x fx Within this worksheet you will find a list of transactions for the month of August. B C 1 Journal Entry Instructions Before starting work review the entire project: all Instructions, business transactions descriptions, workbook sections, rubric, check figures, due dates, and submission requirements. Within this worksheet you will find a list of transactions for the month of August. Use these to write the corresponding Journal entries. You are to write all the journal entries in general journal format (double entry accounting) LIST DEBITS BEFORE CREDITS. SKIP 1 LINE AFTER EACH ENTRY, MAKE SURE TO INPUT THE CORRECT NUMBER OF TRANSACTIONS ON EACH GENERAL JOURNAL PAGE - THERE MAY BE EXTRA ROWS ON EACH PAGEIT! Credit Terms & Inventory Accounting Davenport Docking uses the net method of accounting for purchases and sales. The net method assumes that discounts are taken when a purchase or sale of inventory is made on account. Discounts are applied at the time a purchase or sale of inventory is 5 made PURCHASE DISCOUNT TERMS: When Davenport Docking purchases merchandise inventory from a supplier or vendor on account, they receive credit terms of 2/20, net 30. Do NOT round intermediate calculations. If required round final number to nearest 6 cent. SALE DISCOUNT TERMS: When Davenport Docking sells merchandise to a customer on account, they offer that customer credit terms of 2/30, net 45. DO NOT round intermediate calculations. If required round final number to nearest cent. Davenport Docking uses a perpetual inventory accounting system and a first-In, first-out (FIFO) inventory costing method. Within this workbook there is a worksheet labeled Inventory Control. You will need to update this worksheet EVERYTIME purchase or sale of INVENTORY is made. As part of that process you will be calculating the value of COGS each time you generate a sale of inventory. Use the "Inventory Control worksheet to calcluate your COGS values. 9 JULY JOURNAL TRANSACTIONS 11 LZ 1-ul Purchased 5.000 Fish Finder units on Credit from Raydar Marine for $42.00 per unit 1-Jul sued 10,000 shares of common stock for $20 per shareefer to the Chart of Accounts for description of 13 common stock - including of shares outstanding 15 1 Jul Signed a one year 19% $216.000 note puble with Boat US Bank 10 Sold 4,000 Propellers on account to Chris Cralt for $65 per units, Invoice 5555 2 Jul Rented part of the warehouse to a new tenant and received $10,000 for three months rent buly, August 19 September Cane Background Products Chart of Accounts AR Ledger Chart of Accounts AP Led Select destination and press ENTER or choose Paste JAN W 28 Formulas Data Review View Insert Draw Page Layout Home 11 - A A 23 Wrap Ten X IG Calibri (Body) Merge Center av A Pasto BIU Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. x fx Within this worksheet you will find a list of transactions for the month of August. Use C 9 JULY JOURNAL TRANSACTIONS 10 11 1-lul Purchased 5,000 Fish Finder units on Credit from Raydar Marine for $42.00 per unit. 1 Jul Issued 10,000 shares of common stock for $20 per share (Refer to the Chart of Accounts for description of 13 common stock - including # of shares outstanding 1.Jul Sphed a one year 15%, $216,000 note payable with Boat US Bank 1Jul Sold 4,000 Propellers on account to Chris Craft for $85 per units, Involce SSSS. 2 Jul Rented part of the warehouse to a new tenant and received $28,000 for three months rent (July, August, September) 20ul Sold 5,200 Fish Finder units on account to Sea Ray for $82 per unit, Invoice 15556. 2 Jul Purchased office supplies from Staples on credit for 54,800. There is NO purchase discount on this transaction 2a as it is not an inventory item 24 END OF GENERAL JOURNAL PAGE 1. THE ENTRIES AFTER THIS MUST GO ON GENERAL JOURNAL PAGE 2 Sold 900 Downriggers for $66 per unit and 800 propeller units for $86 per unit on account to Boston Whaler. 20 26 Invoice 5560 17 18 10 20 21 22 30 Balul The Board of Directors declared a cash dividend of $2 per share for shareholders of record on July 5th, payable on July 12th. Refer to the chart of accounts for # of outstanding shares. Please include All outstanding shares or of 20 July 5th. Sul Received payment from Chris Craft for June 20th sale. Refer to AR ledger for amount. sul Abankruptcy ludpe disallowed Davenport Docking claim for $7,000 dee from Four Winns Management decided to write of this accounts receivable. Sul Pald $3,300 to Du Utility Co to settle amount owed for a utilities bill that was recorded in June an an Account Pavabile. Check 5278 Jul Purchased 8,000 shares of Grand Valley Marine, Inc. stock for 515 per share. The investment is intended to be 20 held for less then you Gender 155.00 Case Background Products Chart of Accounts AR Ledger Chart of Accounts AP Ledge Select destination and press ENTER OC Choose Paste 03 A W 28 Callbrl (Body) v Margn & Pasta B IU a. Av 3 Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. x fx Within this worksheet you will find a list of transactions for the month of August 23 WLWWLT 1 END OF PAGE 2. THE ENTRIES AFTER THIS MUST GO ON PAGE 3 3 11-ul Paid in full for the July 1st purchase from Raydar Marine, Check #5281. 35 10 47 49 su 11 Jul Received a bill from the law firm Bob Loblaw for $18,900, payable upon receipt, for bond consulting fees, pald the bill immediately.no payable recognized. Issued Check 5282. 12-Jul Paid the dividend that was declared on July 3rd, Check #5283. 13Jul Took advantage of a trade discount of 20% on the purchase of 3,100 Propellers on account from Acme. Before applying trade discount the propellers are selling for $50 per unit. (Trade discount taken on total BEFORE purchase discount) 51 13.Jul Purchased 1,850 Fish Finder units on credit from Raydar Marine for $50 per unit. 15.Jul Sold 2,500 Propellers on credit to Donzi for $99.00 per unit, Invoice 5557. 55 15 Jul Check#5284 was issued for payroll: $25,800 for salaried and $10,550 for wages, 57 15.Jul Purchased 2,500 Downriggers on credit from Scotty for $32 per unit. 58 END OF PAGE 3. THE ENTRIES AFTER THIS MUST GO ON PAGE 4 17-Jutssued a credit to Sea Ray for the return of 350 defective fish finder units from the July 2nd sale. These units has a cost basis of $41.16 per unit. DO NOT RECORD IN INVENTORY CONTROL WORKSHEET. 52 59 54 50 60 0 0 54 03 17.jul Returned the 350 defective units received from Sea Ray to Raydar Marine. Raydar Marine issued a cash refund. DO NOT RECORD IN INVENTORY CONTROL WORKSHEET. 18-Jul Received payment in full from Chris Craft for the July 1st sale 20 Jul while inspecting the July 13th purchase, it was discovered that the Fish Finder units were programmed for South America instead of North America. Davenport Docking returned the entire order to Raydar Marine. This is input as negative adjustment in the purchases columns on the inventory control tab. 20-lul Davenport Decong purchased 2.800 shares of its own stock for $10 per share. 22 Jul sold 2,650 Downriggers on credit to Sea Ray for 556 per unit, Invoice5559. 68 79 Case Background Products Chart of Account AR Ledger Chart of Accounts AP Le Select destination and press ENTER or choose Paste AN w 28 I a. A hold BIU Marge &c Paste Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates A3 x fx Within this worksheet you will find a list of transactions for the month of Augus B WHERGETICHETTE POR CONDOTT TEACHET COMITUTE 68 20-Jul Davenport Docking purchased 2,800 shares of its own stock for $10 per share. 70 22 Jul sold 2,650 Downriggers on credit to Sea Ray for $56 per unit, Invoice #5559. 71 72 23 Jul Pald $195,000 of the $362,500 owed to Acme from June 25th, Check#5285. 73 END OF PAGE 4. THE ENTRIES AFTER THIS MUST GO ON PAGES 24 75 23.jul Received payment from Donzi for $175,000 of the $300,000 owed from June 24-ul purchased a $3,000 international phone card for one of the sales representative's upcoming European business 72 trip. Check 5286. 79 25-Jul Paid in full for the purchase from Acme on July 13, Check #5287 B1 26-Jul Purchased 1,250 Downriggers from Scotty for $33 per unit paying in cash, Check 5288 83 27-Jul Sold 1,500 Downriggers on credit to Donzi for $61 per unit, Invoice 5558 27-Jul Hired and paid a consultant $50,000 to devise a marketing plan. Davenport Docking's management felt this was 85 necessary to develop brand awareness. Check #5289 28-Jul Davenport Docking is behind in its mortgage payments to LMCU. Pald a total of $20,000 ($4,000 principal and 87 $16,000 interest, Check #15290 89 28 Jul Sold 1,000 treasury shares from July 20th transaction for 515 per share 90 END OF PAGES. THE ENTRIES AFTER THIS MUST GO ON PAGE 6 02 9 92 94 96 29-Jul Received payment in full from Dond for the July 27th transaction 29.Jel Sold 3.000 shares of Grand Valley Marine, Inc stock for $18 per share. 29 Jul Check 5292 was issued for puroli: $25,800 for salaries and $11.950 for wages. 30 Jul Paid the first month's principal payment of $18,000 on the note payable from July1 Boat US bank. In addition, paid one month interest interest Calculated BEFORE principal payment cach month, Check 45293 30 Jul issued bonds puyable at 97 discount. Face value of the bonds is $400,000. Contract rate on bond is 8x and bond matures in 5 years 9E 100 Chart of Accounts AP Le Case Background Products Chart of Accounts AR Ledger Select destination and press ENTER or choose Paste AN w 28 in MG cantar S%63 Conform Forening Office Update top up-to-date with curty updates and improvements, choose check for Update 024 axfx B D H G 1 Do NOT round intermediate calculations. If required round final number to nearest cent. 2 Fish Finders N Ending inventory Purch Purch 4 bata USNE 5 Begal Se Uns OGS) we Salent CGS Sales units 300 SA as 5 00.00 300000 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Propellers 22 Purches Purch Purch 23 Date Units Suit Purch 24 Be 25 26 22 28 29 30 31 32 Invertory Sale Unita ICGS) Sale SAU CGS Sale SCOS Units 5200 1 sunt es $55.00 206.000.00 4 Case Background Products Chart of AC ARU Chart of Accounts AP Ledger Select destination and press ENTER O che Past Chart of Account OL Transactions w 28 ... MacBook AS K M N Purch ome Update To keep up-to-date with security updates, es, and provements, choose check forum 024 Axfx c D G H 1 21 Propellers 22 harcha Sales Ending) Purch Salut Swint 23 Date Anit Purchs OGS Sales SE BU SA 24 Begal S 5200 SI5.00 86.000.00 25 26 27 28 29 30 31 32 34 35 35 37 38 Downriggers 39 Purchase Purch Purch 40 Date Sunt Purch Ending inventory Sale Units ICGS Sales Sale Anit (GS) Sales CS El Units 1400 E SAU DS 5 40.00 56.000.00 47 63 44 45 46 49 50 51 52 53 54 Case Background Products Chart of Accounts AR Ledger Select destination and press ENTER or choose Paste Chart of Accounts AP Ledger Chart of Accounts GL Trans W 28 SOR Home Insert Draw Page Layout Formulas Data Review View X Calibrl (Body) 11 - A A 2 Wrap Text Marge & Center Paste B 1 U a. Av Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. 4 x CS B D E 1 2 3 Page 1 4 Date Davenport Docking Corporation General Journal Accounts DERIT CREDIT 6 7 8 9 10 21 12 13 14 15 16 17 18 19 20 21 22 23 Case Background Products Chairt of Account AR Ledger Select destination and press ENTER or choose Paste Chart of Account AP Ledger W 28 3 Company Background & Scenario The Davenport Docking Corporation is a well-established, publicly-held corporation, operating as a wholesaler in the marine parts industry. Specifically, Davenport Docking purchases marine parts from manufacturers and sells them to large business customers. Most purchases and sales are on account, with trade credit terms specified in "Transactions" worksheet within this workbook You're a Davenport University student pursuing a bachelor's degree in business and employed at the Davenport Docking Corporation this semester as an intern. You've worked in various departments and on several projects so far, learning a lot 5 about the company's business operations Management seems impressed with your enthusiasm and the quality of your work The company's accountant has just been called away for a family emergency and will likely be absent for a month or so. The General Manager asks you to take over the accountant's regular duties on an interim basis. You're nervous about doing so, but i are confident that what you've learned in accounting class, plus your personal problem-solving skills, will make this a 6 successful experience. What a great learning opportunity, not to mention an enhancement to your resume! 7 IMPORTANT: To complete part 1: 8 1. Read All Instructions at the top of these tabs: Transactions, General Journal - ADJ, General Journal - CLOSING. 2. Enter journal entries from transactions tab into the general Journals pages 1-6. The inventory control tab needs to be 9 completed in order to enter certain journal entries 10 3. Enter adjusting entries in the general journal-ADJ tab 11 S. Enter 2 closing entries to the general journal closing tab using the trial balance closing tab amounts. 12 13 14 15 16 17 18 19 20 21 22 23 Case Background Products Chart of Accounts AR Ledger Chart of Accounts AP Ledge Select destination and press ENTER or choose Paste a. Av Paste Office Update To keep up-to-date with security updates, fixes, and improvements, choose Ch X fx Transom mounted deep lake fishing device B Product Name Fish Finders Propellers Downriggers Description Helm module using sonar to identify fish Propulsion unit designed specifically for V-drives Transom mounted deep lake fishing device 0 7 3 15 17 18 19 20 21 22 25 24 28 2 127 2 29 10 1 SP 34 HD Os Background Pro Chart of Accounts AR Ledger Chart Of A Solde de ENTER ar choose Paste Formulas Data Review Page Layout View Home Insert Draw Callbrl (Body) 11 AA no Paste B 7 U a A * Omice Update To keep up-to-date with security updates, fixes, and improvements, choose Check C5 X fx 7000 C B D A E NE Davenport Docking Corporation Chart of Accounts - Accounts Recelvable Ledger Account Name Four Winns Chris Craft Sea Ray Boston Whaler Donzi June Balances $ 7,000.00 $ 86,350.00 $ 65,000.00 $ 92,500.00 $ 300,000.00 12:1 22 123 24 25 125 32 125 20 20 30 Card Products Select destina ENERO sho Chart Accounts AR Ledger Chart of Act F Calibrl (Body) a. Av Paste I U B 3 Office Update To keep up-to-date with security updates, fixes, and improvements, choose -5 X & fx D E B Davenport Docking Corporation Chart of Accounts - Accounts Payable Ledger Account Name June Balances 5 5 7 B 9 10 11 12 13 14 15 Raydar Marine Acme Scotty DU Utility Company Staples $ 25,000.00 $362,500.00 $ 104,000.00 $ 3,300.00 $ 500.00 16 Office Update To keep up-to-date with security updates, fixes, and improvements, choos x & fx 81 1 Davenport Docking Corporation 2 Chart of Accounts - General Ledger 3 4 BALANCE SHEET ACCOUNTS 5 Assets 6 Current Assets 7 Acct # Account Name 8 100 Cash 9 102 Accounts Receivab 10 103 Allowance for Doubtful Accounts 11 104 Merchandise Inventory 12 105 Estimated Returns Inventory 13 106 Office Supplies 14 107 Prepaid Insurance 15 Other Assets 16 120 Investments - Trading 12 121 Investments - Available for Sale 18 122 investments - Held to Maturity 19 123 Valuation Allowance Property, Plant and Equipment 140 Land 145 Building 146 Accumulated Depreciation - Building 24 151 Equipment 152 Accumulated Depreciation - Equipment 25 153 Office Furniture 154 Accumulated Depreciation Office Furniture 2 Liabilities Current Llabilities 201 Accounts Payable 202 Wages Payable 203 Interest Payable 2 204 Dividends Payable 205 Uncarnud Rent 25 206 Customer Refunds Payable Cas Background Products Chart of Accounts A Ledger Select destination and proBNENTEH or choose Paste SERN 25 SNIS Chart BAN W 28 3 Office Update To keep up-to-date with security updates, foxes, and improvements, choc B1 x & fx 86 Long-Term Liabilitles 37 250 Notes Payable 38 251 Bonds Payable 39 252 Premium on Bonds Payable 40 253 Discount on Bonds Payable 41 252 Mortgage (Warehouse) Payable 42 Capital (Equity) 43 300 Common Stock, $1 Par, 100,000 Authorized; 40,000 shares issued/Outstanding 44 301 Pald in Capital - Excess of Par (PIC), Common Stock 45 330 Retained Earnings + 46 331 Cash Dividends 47 340 Treasury Stock 48 341 Pald in Capital - Excess of Par (PIC), Treasury Stock 49 342 Unrealized (Gain) Loss - Available for Sale 50 INCOME STATEMENT ACCOUNTS 51 Revenue 52 500 Sales 53 Cost of Goods Sold SA 600 Cost of Goods Sold 55 Operating Expenses 56 700 Wage Expense (hourly workers) 57 201 Salaries Expense (Exempt Staff) 58 702 Marketing Expense 59 703 Travel and Entertainment Expense 50 704 Bad Debt Expense 61 705 Property Tax Expense 62 705 Office Maintenance & Repair Expense 63 707 Legal Expenses 208 Insurance Expense 65 709 Utilities Expense 56 710 Office Supplies Expense 722 Telecommunications Expense 712 Depreciation Expense Equipment 69 713 Depreciation Expense-Office Furniture 79 Other income Case Background Products Chart of Accounts AR Ledger Select destion and ENTER o choose Paste Cha JAN w 28 x & fx B1 B 65 709 Utilities Expense 66 710 Office Supplies Expense 67 711 Telecommunications Expense 68 712 Depreciation Expense - Equipment 69 713 Depreciation Expense - Office Furniture 70 Other Income 71 800 Rent Income 72 801 Unrealized Gain - Trading Securities 73 802 Realized Gain - Investment Securities 74 Other Expenses 75 900 Interest Expense 76 901 Urealized Loss - Trading 77 902 Realized Loss - Investment Securities 78 Formulas Data Review View Page Layout Home Insert Draw X 11 Callbrl (Body) ' ' 25 Wrap Text 5 V Marge & Cont: Pasta BIU 3 Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates A3 4 x fx Within this worksheet you will find a list of transactions for the month of August. B C 1 Journal Entry Instructions Before starting work review the entire project: all Instructions, business transactions descriptions, workbook sections, rubric, check figures, due dates, and submission requirements. Within this worksheet you will find a list of transactions for the month of August. Use these to write the corresponding Journal entries. You are to write all the journal entries in general journal format (double entry accounting) LIST DEBITS BEFORE CREDITS. SKIP 1 LINE AFTER EACH ENTRY, MAKE SURE TO INPUT THE CORRECT NUMBER OF TRANSACTIONS ON EACH GENERAL JOURNAL PAGE - THERE MAY BE EXTRA ROWS ON EACH PAGEIT! Credit Terms & Inventory Accounting Davenport Docking uses the net method of accounting for purchases and sales. The net method assumes that discounts are taken when a purchase or sale of inventory is made on account. Discounts are applied at the time a purchase or sale of inventory is 5 made PURCHASE DISCOUNT TERMS: When Davenport Docking purchases merchandise inventory from a supplier or vendor on account, they receive credit terms of 2/20, net 30. Do NOT round intermediate calculations. If required round final number to nearest 6 cent. SALE DISCOUNT TERMS: When Davenport Docking sells merchandise to a customer on account, they offer that customer credit terms of 2/30, net 45. DO NOT round intermediate calculations. If required round final number to nearest cent. Davenport Docking uses a perpetual inventory accounting system and a first-In, first-out (FIFO) inventory costing method. Within this workbook there is a worksheet labeled Inventory Control. You will need to update this worksheet EVERYTIME purchase or sale of INVENTORY is made. As part of that process you will be calculating the value of COGS each time you generate a sale of inventory. Use the "Inventory Control worksheet to calcluate your COGS values. 9 JULY JOURNAL TRANSACTIONS 11 LZ 1-ul Purchased 5.000 Fish Finder units on Credit from Raydar Marine for $42.00 per unit 1-Jul sued 10,000 shares of common stock for $20 per shareefer to the Chart of Accounts for description of 13 common stock - including of shares outstanding 15 1 Jul Signed a one year 19% $216.000 note puble with Boat US Bank 10 Sold 4,000 Propellers on account to Chris Cralt for $65 per units, Invoice 5555 2 Jul Rented part of the warehouse to a new tenant and received $10,000 for three months rent buly, August 19 September Cane Background Products Chart of Accounts AR Ledger Chart of Accounts AP Led Select destination and press ENTER or choose Paste JAN W 28 Formulas Data Review View Insert Draw Page Layout Home 11 - A A 23 Wrap Ten X IG Calibri (Body) Merge Center av A Pasto BIU Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. x fx Within this worksheet you will find a list of transactions for the month of August. Use C 9 JULY JOURNAL TRANSACTIONS 10 11 1-lul Purchased 5,000 Fish Finder units on Credit from Raydar Marine for $42.00 per unit. 1 Jul Issued 10,000 shares of common stock for $20 per share (Refer to the Chart of Accounts for description of 13 common stock - including # of shares outstanding 1.Jul Sphed a one year 15%, $216,000 note payable with Boat US Bank 1Jul Sold 4,000 Propellers on account to Chris Craft for $85 per units, Involce SSSS. 2 Jul Rented part of the warehouse to a new tenant and received $28,000 for three months rent (July, August, September) 20ul Sold 5,200 Fish Finder units on account to Sea Ray for $82 per unit, Invoice 15556. 2 Jul Purchased office supplies from Staples on credit for 54,800. There is NO purchase discount on this transaction 2a as it is not an inventory item 24 END OF GENERAL JOURNAL PAGE 1. THE ENTRIES AFTER THIS MUST GO ON GENERAL JOURNAL PAGE 2 Sold 900 Downriggers for $66 per unit and 800 propeller units for $86 per unit on account to Boston Whaler. 20 26 Invoice 5560 17 18 10 20 21 22 30 Balul The Board of Directors declared a cash dividend of $2 per share for shareholders of record on July 5th, payable on July 12th. Refer to the chart of accounts for # of outstanding shares. Please include All outstanding shares or of 20 July 5th. Sul Received payment from Chris Craft for June 20th sale. Refer to AR ledger for amount. sul Abankruptcy ludpe disallowed Davenport Docking claim for $7,000 dee from Four Winns Management decided to write of this accounts receivable. Sul Pald $3,300 to Du Utility Co to settle amount owed for a utilities bill that was recorded in June an an Account Pavabile. Check 5278 Jul Purchased 8,000 shares of Grand Valley Marine, Inc. stock for 515 per share. The investment is intended to be 20 held for less then you Gender 155.00 Case Background Products Chart of Accounts AR Ledger Chart of Accounts AP Ledge Select destination and press ENTER OC Choose Paste 03 A W 28 Callbrl (Body) v Margn & Pasta B IU a. Av 3 Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. x fx Within this worksheet you will find a list of transactions for the month of August 23 WLWWLT 1 END OF PAGE 2. THE ENTRIES AFTER THIS MUST GO ON PAGE 3 3 11-ul Paid in full for the July 1st purchase from Raydar Marine, Check #5281. 35 10 47 49 su 11 Jul Received a bill from the law firm Bob Loblaw for $18,900, payable upon receipt, for bond consulting fees, pald the bill immediately.no payable recognized. Issued Check 5282. 12-Jul Paid the dividend that was declared on July 3rd, Check #5283. 13Jul Took advantage of a trade discount of 20% on the purchase of 3,100 Propellers on account from Acme. Before applying trade discount the propellers are selling for $50 per unit. (Trade discount taken on total BEFORE purchase discount) 51 13.Jul Purchased 1,850 Fish Finder units on credit from Raydar Marine for $50 per unit. 15.Jul Sold 2,500 Propellers on credit to Donzi for $99.00 per unit, Invoice 5557. 55 15 Jul Check#5284 was issued for payroll: $25,800 for salaried and $10,550 for wages, 57 15.Jul Purchased 2,500 Downriggers on credit from Scotty for $32 per unit. 58 END OF PAGE 3. THE ENTRIES AFTER THIS MUST GO ON PAGE 4 17-Jutssued a credit to Sea Ray for the return of 350 defective fish finder units from the July 2nd sale. These units has a cost basis of $41.16 per unit. DO NOT RECORD IN INVENTORY CONTROL WORKSHEET. 52 59 54 50 60 0 0 54 03 17.jul Returned the 350 defective units received from Sea Ray to Raydar Marine. Raydar Marine issued a cash refund. DO NOT RECORD IN INVENTORY CONTROL WORKSHEET. 18-Jul Received payment in full from Chris Craft for the July 1st sale 20 Jul while inspecting the July 13th purchase, it was discovered that the Fish Finder units were programmed for South America instead of North America. Davenport Docking returned the entire order to Raydar Marine. This is input as negative adjustment in the purchases columns on the inventory control tab. 20-lul Davenport Decong purchased 2.800 shares of its own stock for $10 per share. 22 Jul sold 2,650 Downriggers on credit to Sea Ray for 556 per unit, Invoice5559. 68 79 Case Background Products Chart of Account AR Ledger Chart of Accounts AP Le Select destination and press ENTER or choose Paste AN w 28 I a. A hold BIU Marge &c Paste Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates A3 x fx Within this worksheet you will find a list of transactions for the month of Augus B WHERGETICHETTE POR CONDOTT TEACHET COMITUTE 68 20-Jul Davenport Docking purchased 2,800 shares of its own stock for $10 per share. 70 22 Jul sold 2,650 Downriggers on credit to Sea Ray for $56 per unit, Invoice #5559. 71 72 23 Jul Pald $195,000 of the $362,500 owed to Acme from June 25th, Check#5285. 73 END OF PAGE 4. THE ENTRIES AFTER THIS MUST GO ON PAGES 24 75 23.jul Received payment from Donzi for $175,000 of the $300,000 owed from June 24-ul purchased a $3,000 international phone card for one of the sales representative's upcoming European business 72 trip. Check 5286. 79 25-Jul Paid in full for the purchase from Acme on July 13, Check #5287 B1 26-Jul Purchased 1,250 Downriggers from Scotty for $33 per unit paying in cash, Check 5288 83 27-Jul Sold 1,500 Downriggers on credit to Donzi for $61 per unit, Invoice 5558 27-Jul Hired and paid a consultant $50,000 to devise a marketing plan. Davenport Docking's management felt this was 85 necessary to develop brand awareness. Check #5289 28-Jul Davenport Docking is behind in its mortgage payments to LMCU. Pald a total of $20,000 ($4,000 principal and 87 $16,000 interest, Check #15290 89 28 Jul Sold 1,000 treasury shares from July 20th transaction for 515 per share 90 END OF PAGES. THE ENTRIES AFTER THIS MUST GO ON PAGE 6 02 9 92 94 96 29-Jul Received payment in full from Dond for the July 27th transaction 29.Jel Sold 3.000 shares of Grand Valley Marine, Inc stock for $18 per share. 29 Jul Check 5292 was issued for puroli: $25,800 for salaries and $11.950 for wages. 30 Jul Paid the first month's principal payment of $18,000 on the note payable from July1 Boat US bank. In addition, paid one month interest interest Calculated BEFORE principal payment cach month, Check 45293 30 Jul issued bonds puyable at 97 discount. Face value of the bonds is $400,000. Contract rate on bond is 8x and bond matures in 5 years 9E 100 Chart of Accounts AP Le Case Background Products Chart of Accounts AR Ledger Select destination and press ENTER or choose Paste AN w 28 in MG cantar S%63 Conform Forening Office Update top up-to-date with curty updates and improvements, choose check for Update 024 axfx B D H G 1 Do NOT round intermediate calculations. If required round final number to nearest cent. 2 Fish Finders N Ending inventory Purch Purch 4 bata USNE 5 Begal Se Uns OGS) we Salent CGS Sales units 300 SA as 5 00.00 300000 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Propellers 22 Purches Purch Purch 23 Date Units Suit Purch 24 Be 25 26 22 28 29 30 31 32 Invertory Sale Unita ICGS) Sale SAU CGS Sale SCOS Units 5200 1 sunt es $55.00 206.000.00 4 Case Background Products Chart of AC ARU Chart of Accounts AP Ledger Select destination and press ENTER O che Past Chart of Account OL Transactions w 28 ... MacBook AS K M N Purch ome Update To keep up-to-date with security updates, es, and provements, choose check forum 024 Axfx c D G H 1 21 Propellers 22 harcha Sales Ending) Purch Salut Swint 23 Date Anit Purchs OGS Sales SE BU SA 24 Begal S 5200 SI5.00 86.000.00 25 26 27 28 29 30 31 32 34 35 35 37 38 Downriggers 39 Purchase Purch Purch 40 Date Sunt Purch Ending inventory Sale Units ICGS Sales Sale Anit (GS) Sales CS El Units 1400 E SAU DS 5 40.00 56.000.00 47 63 44 45 46 49 50 51 52 53 54 Case Background Products Chart of Accounts AR Ledger Select destination and press ENTER or choose Paste Chart of Accounts AP Ledger Chart of Accounts GL Trans W 28 SOR Home Insert Draw Page Layout Formulas Data Review View X Calibrl (Body) 11 - A A 2 Wrap Text Marge & Center Paste B 1 U a. Av Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. 4 x CS B D E 1 2 3 Page 1 4 Date Davenport Docking Corporation General Journal Accounts DERIT CREDIT 6 7 8 9 10 21 12 13 14 15 16 17 18 19 20 21 22 23 Case Background Products Chairt of Account AR Ledger Select destination and press ENTER or choose Paste Chart of Account AP Ledger W 28
