Fill in September only.
Liabilities and Equity (September) Create journal entries to record the following transactions and record in the company's general ledger. 19. Your attorney advises you that with your success, you should form an S. Corporation. This provides you the option to sell the business' stock or its assets, should you desire this when you retire. She prepares the bylaws and files the paperwork with the state department, charging you $900 for her time and filing fees. Start-up costs are amortized over 60 months. (Accounts: Cash, Prepaid Expenses) 20. You decide to turn $5,000 of your Loan Payable into Common Stock, which as a par value of $1.00 for the 500 shares issued to you. This transaction is effective September 1st. (Accounts: Loan Payable, Common Stock, Additional Paid in Capital) 21. You also decide to turn $4,000 of your Loan Payable into a long-term Note Payable that pays interest of 12% per annum. The loan is a balloon loan that matures in five year. You sign the paperwork with an effective date of September 1st 22. Your bread continues to be a hit. The specialty grocery store orders 4,000 loafs, to be delivered at the end of the month. They also pay you for their previous order of 3,000 loafs. (Accounts: Cash, Accounts Receivable) 23. Linda wants her $800 monthly rent money for August and September. (Accounts: Cash, Rent, Rent Payable) 24. You purchase ingredients (e.g., flour, yeast, eggs, salt, sugar, milk, butter, vegetable oil, spring water) for $1,800 on account. (Accounts: Accounts Payable, Inventory) 25. You deliver 4,000 loads at the end of the month for $2.50 a loaf. This sale in on account. (Accounts: Sales, Accounts Receivable) 26. You count your baking inventory at the end of the month. You have supplies left of $100. (Accounts: Inventory, Cost of Goods Sold(COGS)) 27. You count your office supplies inventory, noting that you have $80 worth of supplies on hand. (Accounts: Supplies, Supplies Expense) 28. You record monthly depreciation on the baking equipment; bowls, baking trays, and tray racks. (Accounts: Depreciation, Accumulated Depreciation) 29. You record monthly depreciation on the oven. (Accounts: Depreciation, Accumulated Depreciation) 30. At the start of the month, you hired a part-time employee at $15 per hour. The employee worked twenty 4- hour days; you will pay him October 1st. (Accounts: Salary Expense, Accruals) 31. Accrue FICA and FUTA on employee's Salary at 8%. (Accounts: Payroll Taxes Expense, Accruals) 32. Perform other entries to fix the books (e.g., #32 for amortization of start-up costs, #33 for interest on Note Payable) K L M N o P R S T U V w Y Z Z AA AB A A B F G H 1 82 September 83 ID Account Name Account Number Debit Credit 84 19 Prepaid Assets 104 85 19 Cash 101 86 Desc. To record cost of Attorney to Incorporate 87 88 20 Loan Payable 204 89 20 Common Stock 301 90 20 Additional Paid In Capita 302 91 Desc. To record issuance of 500 shares of stock at $1.00 par for $10 per share 92 93 21 Loan Payable 204 94 21 Note Payable 205 95 Desc. To convert Loan Payable to a ballon note with 12% APR interest 96 97 22 Cash 101 98 22 Accounts Receivable 102 99 Desc. To record receipt from customer 100 101 23 Rent 504 102 23 Rent Payable 202 103 23 Cash 101 104 Desc. To pay August and September Rent 105 106 24 Inventory 106 107 24 Accounts Payable 201 108 Desc. To record purchase of Inventory with cash 109 110 25 Accounts Receivable 102 111 25 Revenues 400 112 Desc. To record 4000 loafs sold on account 113 114 26 Cost of Good Sold 501 115 26 Inventory 106 116 Desc. To record Inventory used ($50 + $1800 - $100) 117 118 27 Supplies Exnense 508 General Journal General_Ledger Submission_1_July_Schedule Submission_2_August_Schedule Submission_3_Sept_Schedule Submission_4_Trial_ ... + SAM A B G H 1 K L M N o P R S T U V w Y Z Z AA D E F Desc. To record 4000 loafs sold on account AB A 26 Cost of Good Sold 26 Inventory 501 106 Desc. To record Inventory used ($50+ $1800 - $100) 27 Supplies Expense 508 27 Supplies Inventory 105 Desc. To record supplies used ($85 + $0 - $80) 29 Depreciation 29 Accum. Deprn 505 108 Desc. To record depreciation on baking equipment for September 29 Depreciation 29 Accum. Deprn 505 108 Desc. To record depreciation on oven for September 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 30 Salaries Expense 30 Accruals 502 203 Desc. To accrue the salary expense for September 31 Payroll Taxes Expense 511 31 Accruals 203 Desc. To accrue the payroll taxes on salary expense 32 Amortization Expense 507 32 Prepaid Assets 104 Desc. To record one month amortization of Start-Up Costs 33 Interest Expense 33 Accruals 521 203 Desc. To record one month of interest on Note ($4000 x 12% / 12 months) General Journal General_Ledger Submission_1_July_Schedule Submission_2_August_Schedule Submission_3_Sept_Schedule Submission_4_Trial_ ... + GAM G H 1 J K L M N o P Q R S T U V W Y Z AA AB 1 A B D E The Hoya Bakery 2 Calculation of Prepaid Assets 3 Amortization for the months of September through December 4 5 September October November December 6 Incorporation Costs 7 Cost 8 Life (months) 9 Monthly Amort. #DIV/0! 10 #DIV/0! #DIV/0! #DIV/0! #DIV/0! 11 #DIV/0! 12 13 Monthly Amortization Expense 14 Net Prepaid Assets 15 16 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 27 General Journal General Ledger Submission_1_July_Schedule Submission_2_August_Schedule Submission_3 Sept Schedule Submission_4_Trial_ .. + 1 GA.M H 1 J K L M N 0 P R S S T T U V W w A A B D E F G 37 38 August 39 ID Account Name Account Number Debit Credit 40 9 Cash 101 2,500.00 41 9 Accounts Receivable 102 2,500.00 42 Desc. To record receipt from customer 43 44 10 Rent Payable 202 800.00 45 10 Cash 101 800.00 46 Desc. To record payment of rent payable 47 48 11 Rent 504 800.00 49 11 Rent Payable 202 800.00 50 Desc. To record rent payable for the month of August 51 52 12 Equipment 107 4,500.00 53 12 Loan Payable 204 4,500.00 54 Desc. To record purchase and installation of oven 55 56 13 Inventory 106 1,400.00 57 13 Cash 101 1,400.00 58 Desc. To record purchase of Inventory with cash 59 60 14 Accounts Receivable 102 7,500.00 61 14 Revenues 400 7,500.00 62 Desc. To record 3000 loafs sold on account 63 64 15 Cost of Good Sold 15 Inventory 65 501 1,450.00 106 1,450.00 Desc. To record Inventory used ($100+ $1400 - $50) 66 67 68 69 70 16 Supplies Expense 508 5.00 16 Supplies Inventory 105 5.00 Desc. To record supplies used ($90 + $0 - $85) 71 72 100.00 17 Depreciation 17 Accum. Denrn General Journal 505 108 73 100.00 General_Ledger Submission_1_July_Schedule Submission_2_August_Schedule Submission_3_Sept_Schedi ... + smo, HI 10 A A B D E F G H 1 J K L M N 0 P R S S T T U V W w 43 202 800.00 44 45 10 Rent Payable 10 Cash 101 800.00 46 Desc. To record payment of rent payable 47 48 11 Rent 11 Rent Payable 49 504 800.00 202 800.00 Desc. To record rent payable for the month of August 50 51 52 53 12 Equipment 12 Loan Payable 107 4,500.00 204 4,500.00 Desc. To record purchase and installation of oven 54 55 56 13 Inventory 13 Cash 57 106 1,400.00 101 1,400.00 Desc. To record purchase of Inventory with cash 58 59 60 61 14 Accounts Receivable 102 7,500.00 14 Revenues 400 7,500.00 Desc. To record 3000 loafs sold on account 62 63 64 15 Cost of Good Sold 15 Inventory 65 501 1,450.00 106 1,450.00 Desc. To record Inventory used ($100+ $1400 - $50) 66 67 68 69 16 Supplies Expense 508 5.00 16 Supplies Inventory 105 5.00 Desc. To record supplies used ($90 + $0 - $85) 70 + 71 72 505 100.00 17 Depreciation 17 Accum. Deprn 73 108 100.00 74 Desc. To record depreciation on baking equipment for July and August ($1000 / 20 months x 2 months) 75 76 77 78 18 Depreciation 505 75.00 18 Accum. Deprn 108 75.00 Desc. To record depreciation on oven for August General Journal General_Ledger Submission_1_July_Schedule 79 Submission_2_August_Schedule Submission_3_Sept_Schedi ... + smo, HI 10 F G H 1 K L M. N o P R S T U V w Y Z AA AB AC - A B C D E The Hoya Bakery 2 Calculation of Depreciation Amortization for the months of July, August and September. Nm July August September $ $ 50.00 $ 50.00 50.00 100.00 50.00 150.00 8 Baking Equipment Cost $1,000.00 10 Life (months) 20.00 11 Monthly Deprn. $ 50.00 12 13 Depreciation Exp. 14 Accum. Deprn. 15 16 17 Oven Equipment 18 Cost $4,500.00 19 Life (months) 60.00 20 Monthly Deprn. $ 75.00 21 22 Depreciation Exp. 23 Accum. Deprn. 24 25 Totals 26 Depreciation Exp. 27 Accum. Deprn. 28 29 75.00 75.00 75.00 150.00 50.00 50.00 125.00 175.00 125.00 300.00 30 31 32 33 34 35 36 37 38 39 un General Journal General_Ledger Submission_1_July Schedule Submission_2 August Schedule Submission_3_Sept_Schedule Submission_4_Trial_ ... + Liabilities and Equity (September) Create journal entries to record the following transactions and record in the company's general ledger. 19. Your attorney advises you that with your success, you should form an S. Corporation. This provides you the option to sell the business' stock or its assets, should you desire this when you retire. She prepares the bylaws and files the paperwork with the state department, charging you $900 for her time and filing fees. Start-up costs are amortized over 60 months. (Accounts: Cash, Prepaid Expenses) 20. You decide to turn $5,000 of your Loan Payable into Common Stock, which as a par value of $1.00 for the 500 shares issued to you. This transaction is effective September 1st. (Accounts: Loan Payable, Common Stock, Additional Paid in Capital) 21. You also decide to turn $4,000 of your Loan Payable into a long-term Note Payable that pays interest of 12% per annum. The loan is a balloon loan that matures in five year. You sign the paperwork with an effective date of September 1st 22. Your bread continues to be a hit. The specialty grocery store orders 4,000 loafs, to be delivered at the end of the month. They also pay you for their previous order of 3,000 loafs. (Accounts: Cash, Accounts Receivable) 23. Linda wants her $800 monthly rent money for August and September. (Accounts: Cash, Rent, Rent Payable) 24. You purchase ingredients (e.g., flour, yeast, eggs, salt, sugar, milk, butter, vegetable oil, spring water) for $1,800 on account. (Accounts: Accounts Payable, Inventory) 25. You deliver 4,000 loads at the end of the month for $2.50 a loaf. This sale in on account. (Accounts: Sales, Accounts Receivable) 26. You count your baking inventory at the end of the month. You have supplies left of $100. (Accounts: Inventory, Cost of Goods Sold(COGS)) 27. You count your office supplies inventory, noting that you have $80 worth of supplies on hand. (Accounts: Supplies, Supplies Expense) 28. You record monthly depreciation on the baking equipment; bowls, baking trays, and tray racks. (Accounts: Depreciation, Accumulated Depreciation) 29. You record monthly depreciation on the oven. (Accounts: Depreciation, Accumulated Depreciation) 30. At the start of the month, you hired a part-time employee at $15 per hour. The employee worked twenty 4- hour days; you will pay him October 1st. (Accounts: Salary Expense, Accruals) 31. Accrue FICA and FUTA on employee's Salary at 8%. (Accounts: Payroll Taxes Expense, Accruals) 32. Perform other entries to fix the books (e.g., #32 for amortization of start-up costs, #33 for interest on Note Payable) K L M N o P R S T U V w Y Z Z AA AB A A B F G H 1 82 September 83 ID Account Name Account Number Debit Credit 84 19 Prepaid Assets 104 85 19 Cash 101 86 Desc. To record cost of Attorney to Incorporate 87 88 20 Loan Payable 204 89 20 Common Stock 301 90 20 Additional Paid In Capita 302 91 Desc. To record issuance of 500 shares of stock at $1.00 par for $10 per share 92 93 21 Loan Payable 204 94 21 Note Payable 205 95 Desc. To convert Loan Payable to a ballon note with 12% APR interest 96 97 22 Cash 101 98 22 Accounts Receivable 102 99 Desc. To record receipt from customer 100 101 23 Rent 504 102 23 Rent Payable 202 103 23 Cash 101 104 Desc. To pay August and September Rent 105 106 24 Inventory 106 107 24 Accounts Payable 201 108 Desc. To record purchase of Inventory with cash 109 110 25 Accounts Receivable 102 111 25 Revenues 400 112 Desc. To record 4000 loafs sold on account 113 114 26 Cost of Good Sold 501 115 26 Inventory 106 116 Desc. To record Inventory used ($50 + $1800 - $100) 117 118 27 Supplies Exnense 508 General Journal General_Ledger Submission_1_July_Schedule Submission_2_August_Schedule Submission_3_Sept_Schedule Submission_4_Trial_ ... + SAM A B G H 1 K L M N o P R S T U V w Y Z Z AA D E F Desc. To record 4000 loafs sold on account AB A 26 Cost of Good Sold 26 Inventory 501 106 Desc. To record Inventory used ($50+ $1800 - $100) 27 Supplies Expense 508 27 Supplies Inventory 105 Desc. To record supplies used ($85 + $0 - $80) 29 Depreciation 29 Accum. Deprn 505 108 Desc. To record depreciation on baking equipment for September 29 Depreciation 29 Accum. Deprn 505 108 Desc. To record depreciation on oven for September 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 30 Salaries Expense 30 Accruals 502 203 Desc. To accrue the salary expense for September 31 Payroll Taxes Expense 511 31 Accruals 203 Desc. To accrue the payroll taxes on salary expense 32 Amortization Expense 507 32 Prepaid Assets 104 Desc. To record one month amortization of Start-Up Costs 33 Interest Expense 33 Accruals 521 203 Desc. To record one month of interest on Note ($4000 x 12% / 12 months) General Journal General_Ledger Submission_1_July_Schedule Submission_2_August_Schedule Submission_3_Sept_Schedule Submission_4_Trial_ ... + GAM G H 1 J K L M N o P Q R S T U V W Y Z AA AB 1 A B D E The Hoya Bakery 2 Calculation of Prepaid Assets 3 Amortization for the months of September through December 4 5 September October November December 6 Incorporation Costs 7 Cost 8 Life (months) 9 Monthly Amort. #DIV/0! 10 #DIV/0! #DIV/0! #DIV/0! #DIV/0! 11 #DIV/0! 12 13 Monthly Amortization Expense 14 Net Prepaid Assets 15 16 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 27 General Journal General Ledger Submission_1_July_Schedule Submission_2_August_Schedule Submission_3 Sept Schedule Submission_4_Trial_ .. + 1 GA.M H 1 J K L M N 0 P R S S T T U V W w A A B D E F G 37 38 August 39 ID Account Name Account Number Debit Credit 40 9 Cash 101 2,500.00 41 9 Accounts Receivable 102 2,500.00 42 Desc. To record receipt from customer 43 44 10 Rent Payable 202 800.00 45 10 Cash 101 800.00 46 Desc. To record payment of rent payable 47 48 11 Rent 504 800.00 49 11 Rent Payable 202 800.00 50 Desc. To record rent payable for the month of August 51 52 12 Equipment 107 4,500.00 53 12 Loan Payable 204 4,500.00 54 Desc. To record purchase and installation of oven 55 56 13 Inventory 106 1,400.00 57 13 Cash 101 1,400.00 58 Desc. To record purchase of Inventory with cash 59 60 14 Accounts Receivable 102 7,500.00 61 14 Revenues 400 7,500.00 62 Desc. To record 3000 loafs sold on account 63 64 15 Cost of Good Sold 15 Inventory 65 501 1,450.00 106 1,450.00 Desc. To record Inventory used ($100+ $1400 - $50) 66 67 68 69 70 16 Supplies Expense 508 5.00 16 Supplies Inventory 105 5.00 Desc. To record supplies used ($90 + $0 - $85) 71 72 100.00 17 Depreciation 17 Accum. Denrn General Journal 505 108 73 100.00 General_Ledger Submission_1_July_Schedule Submission_2_August_Schedule Submission_3_Sept_Schedi ... + smo, HI 10 A A B D E F G H 1 J K L M N 0 P R S S T T U V W w 43 202 800.00 44 45 10 Rent Payable 10 Cash 101 800.00 46 Desc. To record payment of rent payable 47 48 11 Rent 11 Rent Payable 49 504 800.00 202 800.00 Desc. To record rent payable for the month of August 50 51 52 53 12 Equipment 12 Loan Payable 107 4,500.00 204 4,500.00 Desc. To record purchase and installation of oven 54 55 56 13 Inventory 13 Cash 57 106 1,400.00 101 1,400.00 Desc. To record purchase of Inventory with cash 58 59 60 61 14 Accounts Receivable 102 7,500.00 14 Revenues 400 7,500.00 Desc. To record 3000 loafs sold on account 62 63 64 15 Cost of Good Sold 15 Inventory 65 501 1,450.00 106 1,450.00 Desc. To record Inventory used ($100+ $1400 - $50) 66 67 68 69 16 Supplies Expense 508 5.00 16 Supplies Inventory 105 5.00 Desc. To record supplies used ($90 + $0 - $85) 70 + 71 72 505 100.00 17 Depreciation 17 Accum. Deprn 73 108 100.00 74 Desc. To record depreciation on baking equipment for July and August ($1000 / 20 months x 2 months) 75 76 77 78 18 Depreciation 505 75.00 18 Accum. Deprn 108 75.00 Desc. To record depreciation on oven for August General Journal General_Ledger Submission_1_July_Schedule 79 Submission_2_August_Schedule Submission_3_Sept_Schedi ... + smo, HI 10 F G H 1 K L M. N o P R S T U V w Y Z AA AB AC - A B C D E The Hoya Bakery 2 Calculation of Depreciation Amortization for the months of July, August and September. Nm July August September $ $ 50.00 $ 50.00 50.00 100.00 50.00 150.00 8 Baking Equipment Cost $1,000.00 10 Life (months) 20.00 11 Monthly Deprn. $ 50.00 12 13 Depreciation Exp. 14 Accum. Deprn. 15 16 17 Oven Equipment 18 Cost $4,500.00 19 Life (months) 60.00 20 Monthly Deprn. $ 75.00 21 22 Depreciation Exp. 23 Accum. Deprn. 24 25 Totals 26 Depreciation Exp. 27 Accum. Deprn. 28 29 75.00 75.00 75.00 150.00 50.00 50.00 125.00 175.00 125.00 300.00 30 31 32 33 34 35 36 37 38 39 un General Journal General_Ledger Submission_1_July Schedule Submission_2 August Schedule Submission_3_Sept_Schedule Submission_4_Trial_ ... +
